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Making a business budget is important for any business, regardless of its size. The budget can help decide if you can grow the business, buy additional assets and inventory, give you and your employees a raise, and whether you can avoid bankruptcy. There are many business budget template options available to download out there, even for free, that makes a good start to help you.
Business Budget Spreadsheets
One of the most common business budget template choices is the spreadsheet. It is easy to edit and adjust so you can even custom its format and content depending on your needs. Even so, you may also want to use the template the way it is if it already suffices to meet your needs.
Templates Based on Your Type of Business
First of all, you need to know what type of business you’re in and what kind of product your business offer. This will always highly determine the budget template format to use. If your business provides service, you’ll find the format and your needs different compared to if yours is a retailer or manufacturer. When the product your business offers is in the form of goods, you need to calculate Cost of Goods Sold when recording the inventory and purchases, as well as when calculating the gross profit, for instance.
Business Budget for Specific Period of Time
There are so many formats of business budget template you can find out there, including the 12-month business budget where the sales and expenses are broken down by month. This is a really helpful tool to help you budget the expenses at any specific period of time as you desire, such as quarterly, trimester, or semester.
In the end, the perfect budget is the one that can help you and your business plan for financial growth, help make business decisions, estimate cash flow, monitor and motivate a team, assess seasonal valleys and peaks, and more. Basically, every budget has a similar template. Start from the basics of a budget and then you can develop one tailored to your business and needs appropriately.
Generally, a budget includes projected revenue, expenses, and profit. The projected profit is generated from a simple calculation, where you subtract expenses from revenue. To start a new budget, you can do the traditional method where you referred to the closing actual taken from your financial statements for the previous period of time. But if your business is new, you should make the best estimation. Generally speaking, the realistic projections are what to aim, regardless of whether your business exists or new.
Those projections are to be compared with your business’ actual revenue and expenses, as well as profit. From the comparison, you can see if the financial performance of your business is measuring up or if the budget projections were realistic.
At last, making a business budget is always essential to see if your business is going to the right direction or not. The business budget template will always be a good starting point you can adjust to your needs freely.
Business Budget Template Sample