Budgeting accounting is the process of preparing budget that will help in general accounting process of the company. With the help of accounting budget or budgeting accounting one can make an estimation of the future sales along with the estimate of future monetary collection and the reimbursement that is to be made to the clients, suppliers or any other third party. The next step in budgeting accounting is to prepare an estimation of expenses of the day to day activities of a business and then using these details to prepare income statement and the balance sheet of that particular business.
There is a strong relationship between the budgeting and accounting as both these branches of finance involve planning, calculating and forecasting the monetary resources of the business and the effective use of these resources. The major difference between the accounting and budgeting is that accounting is focus on recording financial transactions where as budgeting involves the planning of the effective usage of the financial resources.
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