Tags: Sample Business Plan For Consulting CompanyEssay Questions For The Movie RootsWrite Descriptive Essay Person You AdmireFukushima Daiichi Nuclear Disaster Case StudyGrowthink Business Plan Template FreeMedical Case Study LayoutTimeline For Dissertation
The following worksheet lays out the income statement line items you can use to set up a basic business budget.Depending on your particular business type, you may have to include additional types of income or expenses, but this worksheet should give you the general idea of the types of items you should include in your business budget.
If you’re interested in having money in your bank account at the end of the month, you might want to start thinking ahead. The good news is that you don’t even need accounting software to make a useful budget for your small business.
All you need is a spreadsheet such as Microsoft Excel or Google Sheets.
Input your projected revenue and line-by-line expenses for the next year, and we’ll show you how those numbers should break down month to month so you can track how you’re doing throughout the year.
By staying on top of how you’re doing at the end of every month, you can make informed decisions about your business—like when you can invest in more resources or when you need to cut back—to get the most out of each dollar and get more insight out of your accounting software.
It also might reveal additional areas where you could shave costs to increase your profits.
An Excel Spreadsheet can be used to create the budget.If your business is small, you may wonder why you need a budget.After all, you most likely have a pretty good idea of your monthly cash flow and expenses.Even the best-established business can run into problems with its supply chain, or face a sudden, unexpected expense like a substantial rent increase.Having a budget in place, even if it's a rudimentary one that you update only once per year, can still help you plan for those eventualities and ride them out when they happen.You’re not going to be 100% on target, but that’s okay.The goal of a budget is to have a fixed point to track your progress against.Your business will reap the benefits of budgeting if you update the budget monthly, using your expenses and income from the prior month as your guide, while also keeping in mind your firm's financial goals or targets for the year.Additionally, work with your senior staff to see if they have information on upcoming issues that could impact the budgeted sales and expenses, either positively or negatively.It may be even truer if your business is well-established, with a cash flow pattern that is quite similar year over year.However, even if this is the case for your business, consider at least drafting a basic budget, like the one on this worksheet.