Comparing your budgeted and actual results will help in evaluating whether you truly were sticking to your budget or not. You can prepare a budget to cover proactively any time period. Usually, a one-year period is developed. This annual budget is mostly projected on a quarterly basis, with each quarter detailed in months and/or weeks. Budgeting and Forecasting for a Better Future Although development is a goal shared by all organizations, it renders the process of budgeting and forecasting expenses of the company's numerous and complex operations. Budgeting and forecasting establish realistic expectations and goals for management to guide the organization forward. These tools for flexible budgeting have been available for years but mostly have been used in other non-service and manufacturing industries. What are the benefits of using a budgeting tool? A budgeting tool is a well-managed guideline of everything about your finances. You can find everything you expect in a budgeting tool including retirement planning, estate planning, capital needs analysis, budgeting, what-if scenarios, disability needs analysis, education needs analysis, cash flow and tax planning, balance sheets, among others. The former is easy, it is basically your paycheck and the money you make from your other jobs. The latter needs more details. You can start by listing the things you can easily identify (for example, rent, car, insurance, alimony, utilities, etc.). Budgeting properly entails tracking all your expenses. If you think you're drowning with the amount of your monthly amortization, say for your mortgage, ask for debt restructuring. Have it stretched to suit your budget. Although you may pay for the mortgage in a longer period of time, the debt restructuring allows you to pay the amortization on time and save on interest for late payments or worse, repossession of your property. The budget is thereby easily reviewed, negotiated, modified and managed for approval and implementation. Budgeting software simplifies spread sheets so you know exactly how much you have money left to spend. With it, you will quickly understand the impact of your spending habit. It effectively helps you in every step you should make to improve your finances.