Prepare a budget is a usual procedure for any self-employed offering professional services, also companies when it is time to indicate the price to the final customer and confirm this to start up said service. Well, maybe the reason you're here is that you're a bit stuck on the subject of budget types and you want to know more or less the definition of each of them. We will talk, therefore, of general classification in which you can frame different types of budget, such as sales, for the latter I recommend a Word budget template that you can fill out and do it faster.
In this article I want to indicate the different types of budgets according to their typology, in this way you would already know from the beginning where to start. If you want to know more about what types of budgets exist, you just have to follow the lines of this article. Go for it!
What is a budget?
A budget, within the professional scope, is a document model that shows the costs for the completion of a project or service. Autonomous professionals usually present this document to their clients so that they value and decide to start the service knowing in advance the approximate cost of such operation.
How many types of budgets exist?
Very important question for this case, there are many types of budgets that can be classified into different types of classes
Budgets by type of company
Here you can give two types, budget for public and private companies. In the first case it refers to companies or public entities or managed by the government, however, the second refers to companies in any sector where the social capital or its management is private.
Budget by type of flexibility
In this section they can be of the flexible or variable type, that is, said budget can be changed depending on the progress of the service or project, either due to changes in the process or complications.
In the opposite part there are the fixed budgets, or also denominated assigned ones. They will be those closed budgets that will not give rise to modifications.
Short-term budgets will be given when they have less than one year of execution and in the long term with periods of more than one year.
Budgets according to evaluation
Are estimated or standard type, on the one hand, the estimate will be open budgets for the naturalization of the service that is subject to changes either caused by the market or by one of the parties. In relation to standard budgets, these tend to be very close to the final price of the service.
Budget according to its content
Main or auxiliary budgets can be given, the first will be those budgets that indicate the most important points of the areas of a company that will also include auxiliary budgets, the latter will be those that will only represent one of the areas of the company.