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Expense budget planning is an important part of any budget. An expense budget is a list of forecasted expenses within a set amount of time. An expense budget could cover a quarter, an entire year or just a month.
The purpose of an expense account is to show how much money is leaving your company in terms of expenses. This expense account allows you to budget money for goods and services that your company needs in the course of doing business.pecifically, it measures the negative change in your company's total asset size. The expense account or allowance will tell you how much money is being spent to run your business while an allowance, specifically, tells you how much money is being reimbursed to employees for expenses.