Budget | Income/Expense accounting

In accounting, the budget is a planning and control tool. It indicates in advance the income and expenses expected over a certain period (usually one year). It is like a financial map: it helps you plan and understand whether the available resources will be sufficient or if adjustments will be needed.

It allows you to keep track not only of expected income and expenses, but also of future liquidity.

The budget is based on:

• concrete data
• past experiences
• future goals

Why it is useful to set up a budget

A budget helps to:

• Make informed decisions → understand whether you can invest in a project or if it is better to reduce some expenses.
• Monitor progress → by comparing budget and actual results, you can immediately see if you are spending more or less than expected.
• Manage responsibly → especially for associations, organizations, and small businesses, it is a tool for transparency and good organization.

How to set up the budget in Banana Accounting

To set up the budget you have two options:

• In a simple way through the Budget column in the Accounts and Categories tables.
• In an advanced way through the Budget table, with detailed entries.

Budget in the Accounts and Categories table (annual basis)

• Enter the amounts directly in the Budget column of the Accounts and Categories tables.
• The amounts are annual.
• The Diff. Budget column shows the difference between forecast values and actual values (automatically updated with transactions).
• The budget columns are visible in the Budget view.

With this method, the Budget table is not used.

Budget in the Budget table

This is an advanced and very detailed budget. Based on the data entered and the indicated dates, the program automatically calculates specific results for each period.

• Enter forecasts as entries in the Budget table.
• If the table is not visible, activate it from Tools > Add new features > Add Budget table.
• You can also indicate Quantities, Prices and enter Calculation formulas.

This type of budget is created by entering future transactions in the Budget table and then specifying their recurrence. Based on the data entered, the program calculates the detailed budget.

• Each entry includes:
  • a liquidity account (e.g. bank, cash),
  • a category (reason for expense or income).

This way you can see not only expected income and expenses, but also future liquidity movements, i.e. how much money you will have available at different times.

Columns of the Budget table

In Income and Expense Accounting, the columns of the Budget table are the same as those of Double-entry Accounting, with a few differences:

• Forecast amounts → entered in the Income or Expense columns.
• Instead of the Debit/Credit columns → there are the Account (items of what you own and owe) and Category (reason for income or expense) columns.
• Optional columns: Quantity, Price, Formula → if filled in, the program automatically calculates the amount. When the program calculates the amount automatically based on the Quantity, Price, or Formula columns, the result is entered in the Income column if positive, and in the Expense column if negative.
  In the Quantity and Price columns you can enter both positive and negative values.

More information: 

• Columns of the Budget table
• ▶ Video: Budget in Income and Expense Accounting

Printing the Budget

You can print the Budget in one of the following ways:

• directly from the Accounts table, in the Budget view.
  This method is used when choosing the budget in the Accounts or Categories table (annual basis).
  The printout shows the column layout as displayed in the image.
   
• from the menu Reports > Enhanced statement with groups. 
  This method is used when using the detailed budget from the Budget table.
  In the Columns section you must enable the option:
  • Budget for the Categories and possibly for the Accounts.