What is a Budget?Controlling costs is an important aspect of business. Some individuals may determine that this is the single most important aspect of a financial position in an organization. A budget is an estimate of how much your costs will be for a given period. In finance and accounting, a very important aspect of accounting is to create a budget (an estimate of costs) and then compare the actual costs to the budget. The actual costs can typically be retrieved from your accounting software.The reports that are generated from accounting software are not always user friendly. In many cases, there is nowhere for a budget to be entered. What happens when you have an expense in a category where there was no budget? By using a spreadsheet program, such as Microsoft Excel, you can translate the report data into any format that you like. For example, you can group all of the different expense accounts based on a particular project. The possibilities are endless with the flexibility of a spreadsheet program.Your assignment is to create a one-year budget (forecast) as a team in Excel, based on the real estate company you set up. As a team you can decide when/if you would like to do the following real estate transactions. You will explain your decisions in your team’s analysis paper.
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