Annual Budget

Loading the player...

What is an 'Annual Budget'

An annual budget is any budget that is prepared for a 12-month period. An annual budget outlines both the income and expenditures that are expected to be received and paid over the coming year. Annual budgets are used by individuals, corporations, governments and various other types of organizations.

BREAKING DOWN 'Annual Budget'

Annual budgets can apply to either a fiscal or calendar year. These budgets help their creators to plan for the upcoming year and make the necessary adjustments in cash flow to cover expenses. Annual budgets help both individuals and organizations to accurately project their future cash flows and effectively manage their money.

RELATED TERMS
  1. Budget

    An estimation of the revenue and expenses over a specified future ...
  2. Budget Manual

    A set of instructions used within large organizations to prepare ...
  3. Balanced Budget

    A situation in financial planning or the budgeting process where ...
  4. Performance Budget

    A budget that reflects the input of resources and the output ...
  5. Federal Budget

    The federal budget is an itemized plan for the annual public ...
  6. Cash Budget

    An estimation of the cash inflows and outflows for a business ...
Related Articles
  1. Investing

    Capital Budgeting

    Learn the process through which businesses determine whether projects are worth pursuing.
  2. Personal Finance

    Budgeting Basics - Conclusion

    By Amy FontinelleBudgeting is an important component of financial success and one that's not difficult to implement. Let's recap what we've learned in this tutorial: Budgeting isn't just ...
  3. Retirement

    This Is the Year to Start Budgeting

    Whether your issue is credit card debt, student loans (or the fact that Social Security isn't rising next year), it's time to learn how to build a budget.
  4. Personal Finance

    3 Alternative Budgeting Styles: Which One Suits You?

    Not everyone is cut out for online or heavily-involved budgeting. Here are some budgeting solutions.
  5. Personal Finance

    Budgeting Basics

    If you're looking for a way to better manage your money and improve your financial situation, then this tutorial is for you.
  6. Markets

    How Budget Deficits Work

    How do governmental and business budget deficits function?
  7. Markets

    Teaching Financial Literacy To Teens: Budgeting

    Teens should learn how to create a budget, including income and expense projections, and how to account for inflation.
  8. Retirement

    Top 5 Budgeting Questions Answered

    You don't need a degree to understand your money, begin saving and pay down debt.
  9. Personal Finance

    Budgeting Basics - What Is Budgeting?

    By Amy FontinelleMany people think of budgeting as something to do when they're short on cash. College students might turn to a budget to figure out how to make due with their high expenses and ...
  10. Retirement

    6 Reasons Why You NEED A Budget

    By now, you're probably sick of hearing the b word. Too bad. This is just of those financial lessons that cannot be preached enough.
RELATED FAQS
  1. Why would a company choose to operate on a deficit budget in lieu of a balanced budget?

    Learn how companies can strategically use deficit budgets in the short term to get off the ground, expand and work through ... Read Answer >>
  2. Is there a difference between the cash budget and a credit budget?

    Learn more about how cash flow is detailed in cash budgets and how credit budgets work. Find out what these budgets reveal ... Read Answer >>
  3. What is the best software for calculating the cash budget of an individual?

    Explore the options and features of several leading personal finance tools to find the best software for calculating your ... Read Answer >>
  4. What are the revenue recognition criteria in accrual accounting?

    Discover some of the advantages and disadvantages of zero-based budgeting. Zero-based budgeting starts with a new budget ... Read Answer >>
  5. What are the pros and cons of operating on a balanced-budget?

    Take a brief look at some of the major arguments for and against balanced budgets for the U.S. government, the largest debtor ... Read Answer >>
  6. How can you calculate your cash budget in Excel?

    Using Excel to track income and spending, estimate the effects of lifestyle changes, and present the information in ways ... Read Answer >>
Hot Definitions
  1. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  2. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  3. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  4. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  5. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
  6. Security

    A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship ...
Trading Center