To put the budget into practice, start with the following budget types:
Net Zero Budget: Revenue – Expenses = zero. This is necessary for restricted grants where you spend it or lose it.
Net Operating Loss Budget: Expenses exceeds Revenue – Loss is covered by prior year net asset carryover, or unrestricted revenue.
Net Surplus Budget: Revenue exceeds Expenses. Surplus must come from unrestricted revenue or grants.
Here are some budget tips: