Operational Budgeting

Operational budgeting is the process of creating a financial plan for the day-to-day activities of a business or organization over a specific period, usually a year. It outlines expected revenues and expenses, helping managers allocate resources effectively to achieve goals. This budget typically includes costs for salaries, utilities, supplies, and other operational needs. By comparing actual performance against the budget, organizations can assess their financial health and make necessary adjustments throughout the year to ensure they stay on track financially.