What are the major components of a budget?

The two main components of any budget are income and expenses. Other components of a budget include overhead, production, totals and projections. Income is the total revenue that comes in, while expenses are the total amounts of money spent.

In a business, overhead and production includes such things as materials, machines, labor and extra energy spent making products or providing services. The totals feature of a budget shows how good or bad a business is doing from month to month and year to year. The projection component of a budget gives an idea of how a company might do by the end of the year if it continues on its current path.