How To Create An Operating Budget

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Executive Summary

An operating budget is a required component of a business plan used by an entrepreneur prior to opening the business. Once the business is open, the operating budget is analyzed and updated at least once a year to reflect realistic costs and revenues. An operating budget covers every aspect of the business, from income to cash spent and debt incurred. Operating budgets are reviewed by investors and financing companies. An operating budget should be as accurate as possible.

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