A budget It is a document that is developed from the income and expenditure forecasts monetary for a certain period. Its purpose is usually the calculation of the money needed to launch a project, specify an action, etc.
The income , meanwhile, are formed by flow rates that enter the coffers of a company, an entity or a subject. Its about money that comes to the power of someone from, generally, the development of a labor, productive, financial or commercial activity.
In this way, we can proceed to elaborate the definition of Income budgets , which is based on sales achieved in the past and expectations regarding upcoming business activities. While the first data are concrete, the forecasts should be estimated realistically and taking into account various factors that will affect potential income, such as the economic situation of the country or the countries in which you want to operate, the state of demand and the strength of competition.
The income budget is very important since the income that will be determined will depend on the earnings . Of the Total revenue , then the production costs and the different expenses must be discounted in order to know the benefits or losses. Therefore, a well-made income budget is key to forecast whether a given project will be profitable or not.
The income budget, on the other hand, is essential to know if the organization in question, it may face the amounts that appear in the budget of expenses, which can be defined as the information related to the amount that the entity can spend in a given period and a detail of the use it will make of the money. The expense budget should not only be drawn up but approved to be valid.
The amounts found in the revenue budget are called credits . Unlike the expenditure budget, it is executed for the amount that the organization actually receives in the year, regardless of the numbers that are planned to be initially obtained . It should be mentioned that the period of both budgets must be the same, since the period of income serves to carry out the acquisitions stipulated in the expenses.
When the commercial activities to be carried out during the year have already been carried out previously, the preparation of the revenue budget is simpler than when risks such as the publication of a new product or service are assumed. This does not mean that predictions about a known case always offer more security than an unusual bet; it should not be forgotten that the market it's unpredictable.
Despite the inevitable risk that every company must face when preparing an income budget, thanks to the Internet it is possible to make better decisions to increase the chances of achieving its objectives. One of the main elements is the feedback of customers, which includes both complaints and positive assessments about their products and services, something that (with this magnitude) was impossible not so long ago. In other words, if a large percentage of consumers respond negatively to an article, it would not be a good plan rely on your sales to meet the revenue budget.
On the other hand there are the ideas and wishes of the consumers regarding the future plans of the firm. Although they could also be considered part of the feedback, it is much more precise and defined information about your needs. Never possible satisfy to all customers, but show them that his words are taken into account It always brings positive results.