Posted in Finance, Accounting and Economics Terms, Total Reads: 3361
Definition: Budget Period
Budget Period is the specified future period of time over which revenue and expenses are estimated. Budget can be prepared by any entity which earns and spends money. It could be an individual, family, group, government, business or organizations etc.
Budgeting is usually done for short, mid-range, longer term time periods. A month, a quarter and a month are usually observed budget periods. However, budget period can vary with each entity. A family might do budgeting every month. In this case, budget period is of one month. Generally, a government has a budget period of 12 months.
Determining the budget period is the first step in the budgeting process. Budget period can have intermediate control periods over which comparisons are made between budgeted and actual results.