The basic principles of management are planning and control by monitoring. The management of income and expenditure in the business is called financial planning or budgeting.

A sound financial plan is essential to ensure the success or viability of any business; whether an existing business, a business you are considering pursuing, or when considering various business options available.

An annual cash budget is used to provide an estimate of the cash income and expenditure expected to occur over a fixed period, normally the financial year.