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Vladimir [108]
2 years ago
11

Before you prepare a budget, the most important thing you must Know IS..

English
1 answer:
eimsori [14]2 years ago
5 0

Answer:

Total income and expenses.

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.

The first step of the budgeting process is to prepare a list of each type of income and expense that will be integrated or infused into the budget.

Hence, before you prepare a budget, the most important thing you must know is total income and expenses.

The final step to be made by the management of an organization in the financial decision-making process is to make necessary adjustments to the budget.

Furthermore, the benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies. Thus, it is typically used by various organizations or companies due to the fact that, it's tied directly to the strategy and tactics of a company on an annual basis. Also, it is used to set a budget for marketing efforts while anticipating on informations about the company.

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