Budget in the Income and Expenses Accounting

文件资料 •
在此文中

The annual budget is a tool that allows you to plan income and expenses in advance for the year, providing a clear view of the future and helping you make the best decisions. During the year, you can compare the budget with the actual values (actuals) to assess how reality aligns with your planning. 

Thanks to the budget, you can:

  • Make informed decisions: understand whether conditions allow you to invest in a project or if it's better to cut some expenses.
  • Monitor financial performance: by comparing budget and actuals, you can easily see if you're spending more or less than planned.
  • Manage responsibly: for associations, organizations, and small businesses, it is also a tool of transparency and good management.

How to set up the budget in Banana Accounting

There are two available methods:

  1. Annual budget in the Accounts or Categories table
    A very simple and traditional method:
     
    • Enter the budget values directly in the Budget column of the Categories table.
      More information is available on the Simple Budget page.
       
    • In the Accounts table, you can also add additional columns to manage different types of budgets.
      A useful case is adding a column dedicated to the next year's budget, so you can plan the future while staying in the current year's accounting file.
      More details are available on the page Budget for the next year in the current accounting.
       
  2. Full financial planning using the Budget table
    This is a more advanced and detailed approach:
  • You activate the Budget table and enter forecasted transactions not only for costs and revenues but also for liquidity.
  • The Budget column in the Accounts table is updated automatically based on the transactions recorded in the Budget table.

This method gives you a dynamic view of financial developments, month by month or quarter by quarter, including liquidity. 

Comparison between Simple Budget and Advanced Budget

Below is a comparison table between the Simple Budget and the Annual (Advanced) Budget.
 

FeatureBudget Column (Simple)Budget Table (Advanced)
Where it is locatedIn the Accounts tableDedicated table: Budget
ActivationAlways available (default)Must be activated: Tools > Add New Features > Add Budget Table
Level of detailAnnual budget per account/categoryDetailed entries with dates and repetition
Data entryTotal amount for the yearIndividual entries with date, account, and category
Additional fieldsOnly amountsQuantity, Price, Calculation formulas
Recurring transactionsNot availableAvailable (Repeat column)
Future liquidity by periodNot calculatedAutomatically calculated (forecasted cash/bank)
ResultsTotals per account/categoryPeriodic details (day/month/year) + totals
Typical useSimple forecasts, annual budgetDetailed forecasts, precise financial planning

请帮助我们完善必备文件

我们非常欢迎您发送宝贵的反馈意见

请告诉我们什么主题需要更好的解释或如何才能更好的对其诠释。

分享这篇文章: Twitter | Facebook | LinkedIn | Email