what is Budgeting short notes
The process of determining and recording the expectedfinancial results of a future period, generally the next fiscal year. In someorganizations budgeting is limited to financial items that are shown on theincome statement, while in others the budgeting process produces the threemajor statements (Income Statement, Balance Sheet, and Cash Flow Statement).
After the target time period begins, the budgeting process frequently includestracking actual financial figures against the forecast as well. There isconsiderable overlap between the activities of budgeting and forecasting.Budgeting usually involves a more detailed account structure and a finer timescale than forecasting, which typically covers between three and seven years ofhigher-level projections.