Having a business budget for startup is essential for any size business. A business budget helps you decides your growth in business. You can track your purchase additional inventory and assets. A small business budget helps you make spending plan for your business.
It’s possible to modify a small business spreadsheet for income and expenses .Our income statement and business budget spreadsheet are helpful.
If you are starting a business, you can look free Business Start Up Costs template. A startup cost analysis is an important part of a good business plan. It can help you get things off the ground before you begin using a more detailed business budget.
About Business Budget Template
This spreadsheet contains two sample business budgets designed for companies providing services or selling products.
Service Providers: The Services worksheet is a simple business budget that separates income and business expenses into income statement. The categories are fairly comprehensive and easy to add, remove, and modify the categories.
Retailers, Manufacturers, Publishers: The Goods worksheet includes the categories in the Services worksheet, but also has a Cost of Goods Sold section for recording inventory and purchases and calculating Gross Profit.
Using the Business Budget Spreadsheet
These business budget templates are pretty simple to modify and customize. However, here are some things you should know and keep in mind as you use these templates:
Double-Check the Formulas
In adding or moving categories around please double-check the calculations, SUM() formulas that calculate the sum up totals and subtotals.
Conditional Formatting for red Values
Conditional formatting is used to highlight the Difference red if income is less than the budget amount. if business expenses are more than the budget as red value means you ought to take a closer look at it. Actual budget is thus The Difference.
Analyzing Cost of Goods Sold
The costs associated with producing and purchasing goods are variable costs that increase or decrease with the volume of production and sales, such as wages for direct labor required to produce the goods, packaging, inventory purchases, shipping, and commissions. We compare this cost to the total sales. A careful study of these costs can help you determine pricing for your products, which products are more profitable, etc.
Multiple Products
The Goods spreadsheet is set up initially to record total net sales for each quarter. If you want to perform a more detailed analysis for multiple products, you can insert additional rows and separate the sales and costs according to product, or you can use the bonus spreadsheet that is designed for performing a detailed analysis for multiple products.
Income Taxes
A separate section under business expenses calculates the Net Income Before Taxes by subtracting the Total Expenses from Total Income. This helps you make a simple estimate of the income taxes, assuming all the Expenses are tax deductible. If you have any taxable expenses make sure to subtract those values from the Net Income Before Taxes before estimating your income tax budget.
Budgeting Large Non-Recurring Expenses
One of the reasons for budgeting is of course to help you determine whether you will be able to afford upgrades, new construction, asset purchases, etc. However, this budget spreadsheet is mainly for comparing your operating income and expenses to make sure that in your normal business activities you are earning more than you are spending. You would typically look at your Net Income to determine whether you will be able to expand your business, make large asset purchases, etc.
Examples for use of business budget
- Salon budget plan
- Grocery Store budget
- Restaurant daily expenses spreadsheet
