EFFICIENT NET INCOME PREDICTION USING BUDGETING

Abstract

Companies seek profitability by making efficient and cost-effective use of resources and labour. To do so, they need financial road maps that illustrate how they'll deploy resources to meet their goals. To put it another way, organisations must budget wisely in order to achieve their objectives. Companies use budgeting to find the most efficient and successful ways for producing money and increasing their assets. Budgeting is the estimation of likely expenditures and income for a given period. Budgeting enables businesses to keep track of their spending and manage resources to maximise earnings. A three-statement model requires that you become accustomed to forecasting income statement line items as you create it. Projection of the revenue statement's main line items should become second nature. The future value of each line item will be influenced by a variety of factors. There are times when it is possible to clone an existing financial model and merely replace the historical values