Some types of budgets that individuals may use include comprehensive, problem solving and planning budgets while some types of budgets companies may use include operational, cash flow and capital budgets. Budgets generally help individuals and companies allocate money that they expect to receive and spend.Continue Reading
A comprehensive budget is useful for helping people reduce their expenses, while a problem solving budget may focus on reducing expenses in a specific area, such as entertainment or clothing. A planning budget is used to help individuals who need to make a large purchase save up enough money to cover the cost.
Operational budgets helps companies estimate how much revenue they can expect for a period and how much money they'll spend on expenses. Cashflow budgets focus on tracking incoming and outgoing cash while capital budgets, which are focused on company growth, are used to help companies plan for purchases, changes in production or new product launches.Learn more about Household Budgets