Budgeting is critical to determine in advance if your business will have enough money to fund its operations and other expenses. By simply creating a plan on how to spend your money properly and manage all the cash flows, you can avoid situations where you run out of liquid funds to keep the business running. Planning is one thing, but to put it down on a report is another matter. Just like how creating a budget plan may sound easy, but there are many important key points that are in need to be addressed.
In the budget plan, you need to include all the management’s expectation regarding sales, expenses, volume, and other financial transactions of the business for the coming period. Basically, the budget will serve as a tool for both planning ahead of time and taking control of the funds going in and out of the business. As a result, you’ll be able to measure the business’ performance and also improve it for the future.
There are several steps that you need to prepare in building simple budgeting spreadsheets:
- Prepare a sales forecast
2. Determine expected production volume
3. Estimate manufacturing costs and operating expenses
4. Determine the cash flow and other financial effects
5. Formulate the projected financial statements
The steps above to build budgeting spreadsheets are more inclined for manufacturing industry but it could also be applied to other industries by simply replacing the variables of production into something else in cases such as services and others.
With today’s technology, building budgeting spreadsheets became easier by simply creating computer-based models for financial planning and budgeting. Plus, to access ready-made financial model templates online is not a problem at all. If you’re looking for budgeting spreadsheets, you can download the templates here: Budgeting Tools – Budgeting Spreadsheets at eFinancialModels.
Not only can you download spreadsheets for budgeting at eFinancialModels but also other financial model templates for different industries made by financial modeling experts with a substantial amount of experience and a wide range of know-how. So, build your very own budget plan by acquiring a template today and save yourself from the trouble of creating a model from scratch.