A variable budget is a financial planning tool used by businesses to track and manage their expenses. It allows business owners and managers to allocate funds for different projects, departments or activities in an efficient manner. Unlike static budgets, which remain the same no matter what happens, variable budgets can be adjusted on a regular basis to reflect changes in the market, the company’s short-term goals and other factors. With variable budgeting, businesses can stay ahead of changing conditions, giving them greater control over their finances.