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What is the difference between Balance Sheet and the budget?

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Question added by Walied EL-Lakany , Financial Controller , Accounting and Tax Consulting Group
Date Posted: 2014/03/26
Rehan Qureshi
by Rehan Qureshi , Financial Consultant , Self Employeed

Budget is a plan for earning or expenditure. Balance sheet is a picture of the financial position of a company at any point in time. It shows the assets, liabilities and owners' equity in the firm at a particular point in time. Another difference is that the balance sheet is one of the financial statements for the use of external users (creditors, investors, etc.) On the other hand budgets are for the use of management for decision-making. To learn more about budgets and different kind of budgets, you can study cost accounting.

gajendra singh
by gajendra singh , ACCOUNTS OFFICER , NK TEMPLES PVT. LTD.

BALANCE SHEET IS THE STATMENT OF COMPANIES OVERALL FINANCIAL POSITION BUT WE CAPCULATE BUDGET FOR FUTURE ON THE BASIS OF INCOME AND EXPENDITURE FOR REDUCTION OF FUTURE EXPENSES

Yusuf Dalal
by Yusuf Dalal , General Accountant. , Gmamco Contracting LLC

Balance sheet reflect the financial position of the company based on the actual figures where as the bugget is reflects the estimate figures based on the past trends and forecasting..

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