What financial document outlines an organization's expected revenues and expenditures?

The budget is a financial document that outlines an organization's expected revenues and expenditures over a specific period, typically a fiscal year. It serves as a financial plan that helps organizations allocate resources effectively, prioritize spending, and plan for future activities.

Budgets play a crucial role in financial management as they help organizations set financial goals, monitor actual performance against these goals, and make adjustments as necessary. By detailing income sources and anticipated expenses, a budget provides a roadmap for achieving financial stability and can guide strategic decision-making.

In contrast, financial statements, such as balance sheets and income statements, report on past performance and financial position rather than future expectations. Annual reports summarize an organization's activities and financial performance over the past year but do not specifically detail forecasts. Cash flow statements focus on the actual cash entering and leaving an organization, reflecting liquidity rather than providing a comprehensive overview of future revenues and expenditures.