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A budget is a plan of present and future expenses and revenues. The purpose of a budget is to create a projection of spending, savings, and allocation of money. The monetary amounts in a business are allocated to various business objectives and strategies to achieve goals.

Budgets are prepared before the accounting year begins and released on the first day of an accounting year. These are financial plans a company aims to stick by. But they often need adjustments according to requirements. Different types of budgets are:

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