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Types of budgeting depend on the use of the budget which could either be personal or business budgets. Business and Personal Budgets. Budgeting is simply the creation of a plan to properly manage money. A budget usually covers a period of time; for instance, a one-year or five-year budget plan.
These are the cash budget, the budgeted balance sheet, and the budget for capital expenditures. The cash budget states cash inflows and outflows, expected borrowing, and expected investing, usually on a monthly basis. Any item that is not in cash, such as depreciation, is ignored by the cash budget.