What is a budget?

In short

A budget is a plan for the business's expected income and expenses over a coming period — typically a year. It is used to steer the finances and catch deviations early.

In practice

The most common budgets are the operating budget (the result), the cash-flow budget (the money) and the start-up budget. Banks usually ask for budgets when you apply for financing.

Related terms

• Likviditetsbudget (cash-flow budget)
• Resultatopgørelse (income statement)
• Nøgletal (financial ratios)
• See every term in the dictionary

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