Managing budgets is an essential part of running a business. Budgets help people become more intentional with the way money is spent and direct people to organize and prioritize their work to meet financial goals. They allow you to plan your desired financial outcome and then measure your actual performance against the plan. Odoo manages budgets using both General and Analytic Accounts.
A budget is used for a financial plan for a defined period, normally a year. Budgets can be defined based on multiple criteria, such as departments, cost centers, cost types, commodity groups, users, and combinations of these. Some budgets are designed to be flexible budgets, while others are static budgets.
Effective budget management not only contributes to better cash management but also helps control financial results, increase financial control and performance measurement.