What is the primary purpose of creating budgets in NetSuite?

Creating budgets in NetSuite primarily serves the purpose of providing estimates of income and expenses. Budgets are a crucial tool for financial planning and management, allowing businesses to project their future financial performance based on expected revenues and costs. This helps organizations set financial targets and allocate resources effectively.

In a functional context, budgets enable businesses to analyze variances between planned financial performance and actual performance, which aids in decision-making and strategic planning. While forecasting actual results is an aspect of budget management, the foundational goal is to estimate future income and expenses based on current data and trends. This budgeting process informs not only operational strategies but also long-term business objectives.

Generating tax reports or eliminating intercompany profits are more specialized functions that may use data derived from budgeting processes but are not the primary purpose of creating budgets themselves.