A financial plan that outlines estimated revenues, expenses, and cash flows for a specific period, serving as a guideline for financial decision-making and control.
A budget is a financial plan that outlines estimated revenues and expenses over a specific period for a small business. It serves as a roadmap for managing and allocating financial resources, enabling small business owners to set financial goals, track progress, and make informed decisions. A well-structured budget helps control spending, maximize revenue, and ensure the business operates within its means. It typically includes projected sales, costs, and overheads, taking into account factors such as production, marketing, payroll, and other relevant expenses. By creating and adhering to a budget, small business owners can effectively allocate funds, identify areas for cost savings, and achieve long-term financial stability and growth.