Budget Template with Charts is a ready-to-use template in Excel, Google Sheet, and OpenOffice that helps to create and manage your financial plans.
Additionally, it helps you to manage your finances well and achieve financial goals. This Budget Template is useful for Accounts Assistant, Accountants, Audit Assistants, etc.
Table of Contents
A Budget is a quantitative expression of a financial plan for a defined period. It includes estimated sales volumes and other revenues, expenses, and cash flows.
In other words, a budget is the allocated amount for a particular purpose. Moreover, it contains a summary of intended expenditures.
Budgeting is a very important part of the company’s financial well-being. Budget assists in controlling the actual costs. A budget serves as a plan of action to achieve quantified objectives.
Additionally, it serves as a standard for measuring the performance of a company. Eventually, Budgeting can provide an in-depth understanding of money spends.
Furthermore, It reduces debt troubles by thorough planning and well execution of budgets. Thus, Budget is one of the most important administrative tools for managing finances.
There are mainly 5 types of budget. Master Budget, Operating Budget, Cash Flow Budget, Financial Budget, and Static Budget.
Large companies use the Master Budget. It consists department-wise budget. This budget statement highlights the complete picture of the company’s financial activity.
A master budget includes factors like sales, operating, assets, income streams, etc. This allows the company to establish their financial goals as well as evaluate the overall performance.
Companies use the Operating Budget to forecast and analyze projected income and expenses over a specific period. Usually, the management makes the operating budgets time-based.
Often companies prepare them monthly, quarterly, half-yearly, or yearly. In some cases, they also make weekly and bi-weekly budgets.
They are helpful to the management to keep an eye on overspending on regular and unnecessary supplies.
Operating Budgets include costs related to sales, production, labor, material, overhead, manufacturing, and administration.
The purpose of the Cash Flow Budget is to monitor the incoming and outgoing cash of the company. It helps the management to use their cash wisely.
It helps the management to know whether the company has ample cash to handle operating activities.
The Cash Flow Budget also helps to take further investment opportunities that can generate future cash flows. This budget includes accounts payable and accounts receivable.
A financial budget represents the strategy of asset management, cash flow, incomes, and expenses. It depicts a clear picture of the company’s overall financial health.
It is a comprehensive overview of the company’s spending against revenues for core operating activities.
Some activities of companies are recurring and don’t change much over time. These include warehousing expenses, cold storage, rents, etc.
Hence, the nature of such expenses is static. As the name suggests, a Static Budget is a fixed budget that remains unchanged despite changes in sales or revenue.
Usually, a budget statement includes three components. Income, Personnel Expenses, and Operating Expenses. A budget consists of estimated, and actual figures for the respective heads.
Moreover, the final column depicts the difference between the estimated and actual spending. This allows the management to know whether the budget is surplus, balanced, or deficit.
The first thing to consider while preparing a budget is to define the sources of income. It includes Net sales, interest income as well as profit or loss from the sale of assets.
In short, the sources from which the company will generate money.
Secondly, it includes Personnel expenses such as employee salaries, Employee Benefits Spends, and Commissions. Lastly, it includes all Operating expenses.
We have created a Budget Template with Chart. This template will help you manage your finances well and decide financial goals.
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Note: To edit and customize the Google Sheet, save the file on your Google Drive by using the “Make a Copy” option from the File menu.
Let’s discuss the template contents in detail.
This template consists of three sections: Header Section, Data Input Section, and Charts.
The Header section consists of the Company name and heading of Budget Control.
This section consists of four parts.
Income Sources, Personnel Expenses, Operating Expenses, and Budget Overview.
Income Sources: This section record the estimated and Actual Income. It includes income from sales, interest, etc for a specific period is recorded in this head.
Personnel Expenses: Estimated and Actual expenses related to wages, employees, and Commission are recorded under this section.
Operating Expenses: This section records the estimated and actual operating expenses like Legal and auditing, Maintenance and repairs, Office supplies, Postage and Rent or mortgage, etc are recorded.
Budget Overview: It provides an overview of estimated and actual Incomes vs Expenses.
Note: Column for Estimate contains Budget estimates for a specific period. The column for Actual contains Actual income or expenditure for a specific period. The Difference column contains the difference between the Estimated and Actual.
The differences between the actual and the estimated budget amounts are known as variances.
This section consists of a graphical representation of the data of Budget Overview.
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The 50:30:20 rule states to spend your after-tax income in the ratio of 50:30:20.
The split will be as follows:
50%: Spend on needs like groceries, housing, utilities, health insurance, and travel.
30%: Spend on wants and leisure like shopping, dining out, hobbies, learning new skill sets, etc
20%: For savings, financial goals, etc.
The 30-Day Rule is a method to control your spending habits. This rule says that if you want to buy anything, think over it for 30 days.
After 30 days, if the urge of buying stays then buy it or else don’t buy. Thus, saving you from unnecessary spending habits.
The 7 types of budgeting methods are as follows:
In Cash-Only Formula, Define your expenses and categories of spending. Then you withdraw money from the bank and put them in each envelop matching the category.
Zero-Based Budgeting is where the money you have in income matches exactly what is going out of your account.
In this method, you allocate 60% of your income to committed expenses. Then divide the remaining 40% into slots of 10% each. Allocate each 10% to long-term savings, short-term savings, retirement, and leisure expenses.
No Budget method involves paying attention to your bank account balance. You don’t need to track your expenses. All you have to do is to automate payments from your bank accounts for each expense.
In the value-based method, You define your values and based on those values or priorities you spend on each category.
This constitutes of all the above 6 methods depending upon your requirement. It involves research to know what exactly you want out of your budget.
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