annual budgeting

Annual budgeting is the process of creating a detailed financial plan for one year. It involves estimating expected income and projecting expenses across different categories such as salaries, supplies, and other costs. The goal is to allocate funds effectively to meet organizational objectives while ensuring expenses do not exceed income. This plan helps businesses, governments, or individuals monitor financial performance, make informed decisions, and adjust spending as needed throughout the year to stay on track financially. Essentially, it’s a roadmap that guides how money is earned, spent, and saved over the course of a year.