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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.
The above three functions gives a general overview of what budgeting is all about. It does not matter whether you are in business or not. These broad three functions of budgeting can be further subdivided into the following more specific functions of budgeting to give a clearer understanding in a more vivid and lucid manner. 7 FUNCTIONS OF BUDGET