A budget is a plan to prepared for the flow of funds / money in an organization. It contains financial guidelines for the future plan of action for a selected period of time.
By creating budgets for income, expenses, and specific projects, and comparing the actual performance with the budgeted figures, businesses can make better financial decisions
Budgeting helps businesses to set a financial plan (budget) for different accounts, groups. after its enables you can compare actual performance with your planned budget and take necessary actions when deviations occur.
Budget Control is a simple yet powerful way to:
- Control expenses 💸
- Track income targets 📈
- Improve business performance 💼
With proper budgeting, you can manage your resources better and make smarter financial decisions.
Multiple budgets can be created for specific purposes in Tally Prime, Such as Marketing Budgets, Finance Budgets, and so on, can also be created.
Step 1 Create Expense Ledger
Step 2 Create Budget
Gateway Of Tally >> Create >> Budget
If You Didn’t Find “Budget” Option Then Click On Show More Option And Search
Budget Creation
- Budget Name – Office Budget
- Under – Primary
- Period of Budget – 1-Apr-22 to 31Mar-23
- Ledger – Yes
Budget Amount Setup
Step 4 : Payment Voucher as Your Expense, Now Pass You Entry Which Amount Paid By Your Company over the time.
Here Passed Two Entry For Expense Which Amount Paid By Cash To Advertisement Agency And Other Stationary Shop
Profit & Loss A/c
GOT >> Profit & Loss A/c >> Indirect Expenses
Click Budget Variance
Budget
Example 1: Budget for Office Rent
| Ledger | Monthly Budget | Annual Budget |
| Rent A/c | ₹10,000 | ₹1,20,000 |
You can now track if monthly rent exceeds this budget.
Example 2: Departmental Sales Target
| Department | Annual Sales Budget |
| Electronics Dept. | ₹10,00,000 |
| Clothing Dept. | ₹5,00,000 |
Tally compares actual sales and tells you how much is achieved.
Example 3: Event Budget Tracking
| Expense Type | Budgeted Amount |
| Venue Rent | ₹50,000 |
| Catering | ₹30,000 |
| Decoration | ₹20,000 |
Helps in managing cost of events like seminars, training, etc.