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Introduction - Budget

A budget is an expected figure per account per period.

Building a budget and reading it against what actually happened.

On its own it changes nothing: its value is entirely in the comparison against what actually happened, and in whether anyone acts on the difference.

The Budget screen listing three budgets with columns for Name, Fiscal Year, Period, Income, Expense, Net Budget, Accounts and Created.
A budget is a set of figures per account per period. Net Budget is income less expense.

What a budget is not

  • It is not a control. Nothing in SorviAI Finance blocks a transaction for exceeding budget.
  • It is not a forecast of cash. It is per account, not per bank balance.
  • It does not post anything. No budget figure ever appears in your accounts.
  • It is not useful unless somebody reads the variance monthly.

What to budget

Income and expense accounts. Balance sheet accounts are rarely budgeted, because a budget for receivables is really a forecast of collections, which is a different exercise with different inputs.

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