Line-item Budgeting

Line Item Budgeting is a method used to plan and manage finances by breaking down expenses into detailed categories or "line items." Each item represents a specific expense, such as salaries, supplies, or utilities, allowing organizations to track spending closely. This approach provides clarity on where money is allocated and makes it easier to identify areas for cuts or adjustments. While it promotes accountability, it may limit flexibility since budget changes require formal approvals. Overall, line item budgeting helps ensure financial discipline and transparency within organizations, whether in government, businesses, or non-profits.