Budget Management
Budget management, also called budgetary management is the process of overseeing revenue and expenditure tracking in an organization.
Updated: October 17, 2023
Budget management, also called budgetary management is the process of overseeing revenue and expenditure tracking in an organization. Analyzing current spending, organizing purchases by category, and monitoring cash flow over time are involved in managing a budget.
Typically, a medium-to-large business has separate budgets for the company and for individual departments. Keen analytical skills and a careful eye are used by department heads and budget managers for detail to make sure the department maintains positive cash flow and reasonable spending.
An organization can boost profitability and growth with proper budget management. Budget management and forecasting software are used by companies to organize data and plan for future decisions. Income and expenses should be closely managed by company leaders to maximize profit. Business may have different types of budgets, such as a an operating budget and a master budget which may also use different methods to manage these budgets.
Zero-based, activity-based, incremental, and value-proposition are different types of budget management. Assisting in planning, monitoring progress and making decision-making easier are some of the benefits of budget management.
You should collaborate with appropriate team members, select a suitable software program, create alignment and review the budget on a set schedule for proper budget management.
Types of budget management
- Incremental Budgeting
- Zero-Based Budgeting
- Activity-Based Budgeting
- Performance-Based Budgeting
- Cash Flow Budgeting
- Flexible Budgeting
- Capital Budgeting
- Master Budget
- Rolling Budget
- Participative Budgeting
- Performance Budgeting
- Profit-Center Budgeting
- Non-Profit Budgeting
- Personal Budgeting
- Project Budgeting
