Hi,
I would include income tax as an outgoing in a cash or cashflow budget, as it has to be paid. The money comes out of your bank, or the bank that you are budgetting for, so it needs to be allowed for in order for you to get close to the real situation that is likely to occur. The ultimate purpose of the budget is to predict your peak overdraft, or funding needs.
Personally I would calculate tax as a percentage of taxable income. Being a tax accountant I can do this. However, if you aren't tax minded I would try calculating a percentage based on the past couple of years gross revenue, assuming that things are constant.
One of the weaknesses of budgetting is the assumptions that you have to use. But don't let that put you off the exercise. Just remember that we live in an imperfect world and you are to some extent modelling imperfection. But you can still get close if you develop the skill, and continual practice will develop your skill. :)
operating budget pays for day-to-day expenses, like salaries of a state employee and capital budget pays for major capital, or investment, spending, like building a bridge the money comes from there.
operating budget pays for day-to-day expenses, like salaries of a state employee and capital budget pays for major capital, or investment, spending, like building a bridge the money comes from there.
It authorizes your base to pay for expenses for certain type of funds
It's dificult to budget for vaiable expenses because variable expenses change based on a number of factors.
Actually, income and expenses are the two basic elements of a budget.
The capital budget, the cash budget, and the operating(master) budget.
A personal budget includes all of your expenses as well as your income. When you create a budget it will help you control your finances.
authorizes your base to pay for expenses for a certain type of funds
operating budget pays for day-to-day expenses, like salaries of a state employee and capital budget pays for major capital, or investment, spending, like building a bridge the money comes from there.
It authorizes your base to pay for expenses for certain type of funds
operating budget pays for day-to-day expenses, like salaries of a state employee and capital budget pays for major capital, or investment, spending, like building a bridge the money comes from there.
operating budget pays for day-to-day expenses, like salaries of a state employee and capital budget pays for major capital, or investment, spending, like building a bridge the money comes from there.
operating budget pays for day-to-day expenses, like salaries of a state employee and capital budget pays for major capital, or investment, spending, like building a bridge the money comes from there.
Expenses, taxes, bills and payments and some other debts may affect the budget of either an individual or a family.
It authorizes your base to pay for expenses for certain type of funds
authorizes your base to pay for expenses for a certain type of funds
An operating budget outlines the expected revenues and expenses for a specific period, usually annually. It helps businesses plan and control their financial resources effectively by setting targets and guiding financial decisions. It typically includes details on sales projections, production costs, operating expenses, and profitability goals.