👉 Budgets are financial plans that outline projected income and expenditures for a specific period, typically a fiscal year, for an organization, government entity, or individual. They serve as a roadmap for managing resources efficiently, ensuring that funds are allocated to meet strategic goals and operational needs. Budgets involve estimating revenues from sources like taxes, fees, and donations, as well as forecasting expenses such as salaries, supplies, and maintenance costs. By comparing actual spending to the budgeted amounts, organizations can monitor financial performance, identify variances, and make adjustments to stay within financial limits or achieve desired outcomes. Effective budgeting is crucial for maintaining fiscal health, planning for future needs, and demonstrating accountability to stakeholders.
