Question

What are the 4 steps of the budgeting process?

Answer 1

The 4 steps of the budgeting process are identifying goals and objectives, estimating revenues and expenses, creating the budget, and monitoring and evaluating the budget.

Step-by-step explanation:

The 4 steps of the budgeting process are:

1. Identifying goals and objectives: This step involves setting financial goals and determining the objectives that need to be achieved.
2. Estimating revenues and expenses: In this step, the expected income and expenses for the budget period are estimated.
3. Creating the budget: The budget is developed based on the estimated revenues and expenses, ensuring that income is sufficient to cover expenses.
4. Monitoring and evaluating the budget: The budget is continuously monitored and compared to the actual income and expenses to assess its effectiveness and make any necessary adjustments.