budget (noun, bud-get, \ ˈbʌdʒɪt \) cycle (noun, cy-cle, \ ˈsaɪkəl \)
Definition: is a period of budget life from creation (preparation) to evaluation (when the next budget appears). In other words, a budget cycle determines how long a certain budget lasts (for instance, there are monthly budgets, annual ones, or quarterly budgets). Each budget cycle typically includes such phases as preparing the budget, approving it, executing, and evaluating. A budget cycle serves to help businesses control the expenses and other various costs. A budget cycle sets certain time limits, which help managers and analysts keep better track of the financial state of a company, evaluate its performance, and compare its actual performance with the estimated budget numbers.
In a Sentence:
- When the current budget cycle ends, we will need to evaluate it and create a plan for a new financial year.
- The last budget cycle was influenced by numerous external factors.
- The current budget cycle ends in two months. Then, we can start talking about our plans for the next quarter.
Synonyms and related words: annual budget, monthly budget, quarterly budget, budget adoption, budget variance analysis
