Out of budget accounting

[HichemDAX]

In our scenario we are accounting expenses for a rich personality. Recurrent expenses are budget but some times the personality does some out of/extra budget expenses like big events or buying expensive gifts. What the best practice to track this kind of expenses as we need to get refund from him on the current bank account.

 

[jwmca.com]

I would include an extra line item "Non budgeting expenses" or "extra-ordinary expenses"

Who looks at the budget that you prepare? Is it the person spending the money on big events and gifts? What value does the budget provide to the user of the financial statement?