The budget
A budget is a plan with numbers, approved before the period starts. It is the yardstick against which the period is judged afterwards.
Budget (set before) → Actual (recorded after) → Compare and explain
Why it matters
A figure approved after the fact cannot warn anyone. A budget fixed in advance lets the owner see early when the business drifts from its plan.
Where it appears in a CFO+ model
- In the inputs, which fix the plan for the model's periods.
- In the monthly view of the model, which shows the plan period by period.
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Activities where it shows up
This concept belongs to a section that every CFO+ model asks, whatever the activity.
No figures are published: a definition and a formula only.