Line Item Meaning & How to Use It in Expense Tracking
A line item in budgeting refers to a specific category of expense or revenue that is allocated a certain amount of funds. Organizations use line-item budgets to manage their finances by tracking spending in various categories such as salaries, marketing, utilities, and raw materials. Each line item in a budget typically includes a description, estimated cost, and actual expenditure. This method helps businesses and government agencies ensure that resources are allocated efficiently. Line-item budgeting provides financial accountability and allows decision-makers to analyze where adjustments are needed to control costs and maximize efficiency.