What are the budgeting requirements?

Budgeting helps in any business organisations because all records will be kept and at the same time managers need to know the difference between receipt and revenue likewise to payment and an expense.

Managers have to plan, budget and have a forecast in order for their projected ideas to be completed, as put to writing and presented to the executive officers.

a business person should be able to differentiate between receipt and revenue

Budgeting requirements

Accounting -> Budgeting requirements Budgeting requirements When separating cash and profit it is important to recognise what is: a receipt but not revenue revenue but not a receipt a payment but not an expense an expense but not a payment Reasons for having shorter budget periods include: to provide more accurate information in the budget for the business to act on to better identify periods of cash shortage leading to decisions to improve cash flow to better identify cash surplus maximising the return on excess funds to enable quicker reaction to previously unforeseen events to have better planning and control as a response to reviews of the budget with actual results

information is crystal clear.

One major purpose of budgeting is to have plan for the future inflow and outflow of resources

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What are some basic budgeting requirements?