The budget is one of the most useful tools in finance of a company. While the process can be difficult and tiring, reclassify and define budget accounts can make everything much easier. The best way to reclassify a budget is to determine the total expenditure and the cost of the most common expenses. These will be the basis for the budget in terms of reclassification and must be respected for anyone wishing to take seriously the budgeting process. The expenses can be deducted only in one category, so it is important to know what is the most appropriate category for your expenses.

Distinguish the expenses made ​​by capital from those made ​​with the money made ​​from sales. The expenditures are capital expenditure, other than the purchase of materials for the creation of products. The capital expenditures are generally for long-term purchases, for equipment or other business assets, resources may include land, buildings, machinery, furniture, trucks, patents and rights of franchise. The expenses that are made ​​with the sales revenue, however, include raw materials, cost of shipping to receive such materials, labor costs for employees who produce storage products and other general expenses for the facilities.


Identify the purpose and scope of the budget. Be clear in respect of persons or in respect of departments that support the company, and who are held accountable for adhering to it. Often these groups are not always the same. Define the objective of the financial statements. The goal would be to use the budget as a tool to manage expenses or a platform for project approval. It can also be used to estimate the expenditure for the asset classes such as commodities or securities market.

Create a ceiling of costs and segments in order of amount of money for the organization, for example, most of the companies have cost for supplies of offices, utilities, staff, warehouses and other purchases of various kinds. Classify all costs by creating a cash fund. Create definitions for each classification level, providing a description of each category to follow the budget in case users want to know the classification model What is included in the budget of the float.