Which three accounts can a client set a budget for?

Setting a budget for specific accounts in accounting is an essential practice that helps clients manage their finances and ensure alignment with their financial goals. The appropriate account for budgeting in this context is Cost of Goods Sold (COGS).

COGS represents the direct costs attributable to the production of the goods sold by a company, including materials and labor. Since it is a variable expense that can fluctuate with sales volume, clients often set budgets for COGS to control costs and analyze profitability effectively. By monitoring actual costs against the budgeted amounts, business owners can make informed decisions about pricing, inventory management, and operational efficiencies.

Other accounts like Accumulated Depreciation, Insurance Expense, and Petty Cash are typically not budgeted in the same manner. Accumulated Depreciation is a contra asset account that reflects depreciation expense over time but is not an expense that can be directly influenced in a budgetary sense. Insurance Expense, while it involves regular payments, is often a fixed expense that does not vary widely and is generally budgeted at the account level rather than within production costs. Petty Cash is a current asset that is used for minor cash expenses, and it's typically managed through transactional oversight rather than formal budgeting.

Thus, focusing on a dynamic