A Budget Template is a quantitative expression of a financial plan of a company or individual for a defined period of time. It includes estimated sales volumes and other revenues, expenses and cash flows.
In other words, a budget is the allocated amount for a particular business purpose and the summary of intended expenditures.
Thus, budget expresses the strategic plans of business units, organizations, activities or events in measurable terms.
Budget is not a term only used for businesses. It also has significant importance in personal finances. A personal budget is a finance plan that allocates our future income towards expenses, saving and debt repayment.
I have created a Budget Template with Chart. This template will help you manage your finances well and decide financial goals.
This Budget Template is useful for Accounts Assistant, Accountants, Audit Assistants etc.
Let’s discuss the template contents in detail.
Budget Template Content
This template consists of three sections:
- Header Section and
- Data Input Section
1. Header Section
The Header section consists of Company name and heading of Budget Control.
2. Data Input Section
This section consists of four parts.
Income Sources, Personnel Expenses, Operating Expenses and Budget Overview.
Income Sources: Estimated and Actual Income from sales, interest etc for a specific period are recorded in this head.
Personnel Expenses: Estimated and Actual expenses related to wages, employees and Commission are recorded under this section.
Operating Expenses: Estimated and Actual operating expenses like Legal and auditing, Maintenance and repairs, Office supplies, Postage and Rent or mortgage etc are recorded.
Budget Overview: Estimated and Actual Incomes vs Expenses.
Note: Column for Estimate contains Budget estimates for a specific period of time. Column for Actual contains Actual income or expenditure for a specific period of time. 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 graphical representation of the data of Budget Overview.
Importance of Budget
Budgeting is very important part of 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 gives an in-depth understanding of how and where your money is being spent.
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.
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