What is Operating Budget ?
An Operating Budget is a detailed financial plan that outlines an organization's projected revenues and expenses over a specific period—typically a fiscal year. It serves as a roadmap for day-to-day operations and helps ensure that resources are allocated efficiently to meet strategic and operational goals. Key Components of an Operating Budget: Revenue Projections Sales income Service fees Grants or subsidies Other income sources Operating Expenses Salaries and wages Utilities Rent or lease payments Supplies and materials Maintenance and repairs Administrative costs Net Operating Income Calculated as: Total Revenue−Total Operating ExpensesTotal Revenue−Total Operating Expenses Indicates whether the organization expects a surplus or deficit Purpose and Benefits: Planning : Helps departments align their activities with financial constraints. Control ...