1. To consider the existing assets and liabilities in your budget


When creating a budget for an existing company, you need to import a historical balance sheet into Budgeto. This is an important step because an existing company already has assets and liabilities. Budgeto needs to know the status of these assets and liabilities because they will affect your budget (profit and loss statement, cash flow statement and balance sheet).


For example, if you have an existing long-term debt, Budgeto needs to know the

information about this debt to calculate the following:

1- The interest expense to be recognized in the profit and loss statement;

2- Capital and interest payments to be recognized in the cash flow statement;

3- The monthly balance of the unpaid debt to be reported in the balance sheet.

-------------------------------------------------------------------------------------------------------


2. To create a financial projection for an ongoing year


BUDGETO can be used to prepare budgets on an annual basis and/or to prepare financial projections during the year. The historical data menu lets you enter your historical profit and loss statement monthly, allowing you to start building a budget at any giving time during a fiscal year.


For example, if your fiscal year is from April to March of each year, you can start a budget in October for the remaining months of your ongoing fiscal year:
1- Enter your historical financial information from April to September;
2- Start planning your financial projections in October
-------------------------------------------------------------------------------------------------------


3. To update your financial projection monthly


When entering your past results monthly, Budgeto automatically updates your budget and provides you with a clear vision of your future cash flow situation. Based on your real results, you can review and update your budget in the manner that you wish. Therefore, it will reflect exactly what happened in the past and what should happen in the future.