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Accounting & Tax vocabulary · Costs & Budgeting

Budget

Meaning in accounting & tax, with examples

/ˈbʌdʒɪt/nounCore term

In accounting & tax, budget means: A financial plan that sets out expected income and spending for a future period, usually a year, and is used to control costs and compare actual results.

In Turkish: bütçe

How it is used

Teams prepare, approve and stick to a budget. Results come in on, under or over budget. The budgeting process usually runs in the last quarter of the year.

Example sentences

  1. We're 15 percent over budget on travel this quarter.

  2. The 2027 budget has to be approved by the board in December.

Common collocations

  • prepare a budget
  • over budget
  • under budget
  • annual budget
  • budget cut
  • forecastAn updated estimate of future results, such as sales, costs or cash, based on actual figures so far and current expectations.
  • varianceThe difference between a planned or budgeted amount and the actual result. It is favourable if the result is better than planned and adverse if it is worse.
  • cost centerA department or unit, such as HR, IT or a production line, to which costs are assigned so that managers can track and control spending.
  • fixed costA cost that stays the same in total whatever the level of production or sales, at least in the short term, such as rent, insurance or salaried staff.
  • management accountingThe branch of accounting that prepares internal information, such as budgets, cost analysis and performance reports, to help managers make decisions.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Costs & Budgeting

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This page explains English vocabulary for learners. It is not financial advice.