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