intro to budgeting
operating budget
covers all expected income and expenses for a family, a farm or a business for one year
personal budgets
mainly spending plans
GAAP
Generally Accepted Accounting Principles
what are the three major sections to a budget
revenue, expenses, and income
Enterprise budget
covers only income and costs associated with a single enterprise
business budgets
includes more alternatives on the income side
FASB
Financial Accounting Standards Board
partial budget
covers only the cost and income that will change as a result of the decision that is being considered
why separate farm and family expenses
farm operators must have accurate records of farm expenses
they have to know what they have for federal taxes
FFSC
Farm Financial Standards Council
cash flow budget
an estimate of cash to be received vs. cash to be used to pay bills, make investments and cover other needs
how do you calculate revenue
multiply the selling price per unit times the number of units sold
Completing tax forms is for...
so you don't pay more than is required