What financial document is beneficial for contractors in budgeting projects?

A detailed project budget is essential for contractors as it provides a comprehensive breakdown of all expected costs associated with a project. This financial document allows contractors to plan ahead and allocate resources efficiently, helping ensure that the project stays within its financial constraints. It typically includes estimates for materials, labor, permits, and other relevant expenses, making it a valuable tool for monitoring spending as the project progresses.

By utilizing a detailed project budget, contractors can anticipate cash flow needs, identify potential financial shortfalls early, and make informed decisions about adjustments necessary to meet project goals. This proactive approach contributes to better overall project management and financial stability.

In contrast, the other options, while potentially useful in different contexts, do not provide the specific planning framework that a detailed project budget offers. Last year's tax returns and bank statements provide historical financial information and might help in understanding past performance, but they do not guide future project expenditures. A list of unpaid invoices is more about tracking what is owed rather than planning for what will be spent in a project, lacking the detailed foresight that a project budget provides.