What is an operating budget?

An operating budget is designed to project the anticipated revenues and expenses associated with a property over a specific period, typically one year. This type of budget plays a crucial role in planning how fiscal resources will be allocated to meet the operational needs of an entity. By considering both revenues and expenses, the operating budget helps in establishing a comprehensive financial framework that guides decisions on resource utilization, staffing, and operational priorities.

The inclusion of anticipated revenues is essential because it informs how much can be spent without jeopardizing the financial stability of the property. By projecting expected income alongside costs, it provides a balanced and realistic view of what is financially feasible within the given timeframe. This forward-looking approach allows for better strategic planning and operational efficiency, ensuring that the organization remains responsive to both anticipated operational needs and financial realities.