Enterprise budgets are useful in any business that has more than one profit center. An enterprise budget represents an estimate of the receipts (income), costs, and profit associated with a single product. Depending on the business, an enterprise budget is usually calculated on a per unit or per acre basis so comparisons can be made among different enterprises. The information contained in these budgets can be used by the business owner and his/her adviser(s) in making important decisions about the business.
In a business where there are multiple enterprises contributing to the bottom line, carefully prepared enterprise budgets can help determine which enterprises are most profitable, which are most labor-intensive, and which are of highest value. Used appropriately, enterprise budgets are an excellent planning tool and well worth the time it takes to prepare them.
