Business budgets are extremely important and crucial to any business. A business needs to manage its cash flow well to survive the increasing competition in today’s world, especially with the fluctuating economy.
There are many types of business budget templates depending on the organization and its business. There are many aspects of the business that require a budget; every department needs to have a budget. A budget can include the income as well as the expenditure. To be viable and continue in business, the organization must have a positive budget; that is, its income must exceed its expenditure.
Good budgeting is necessary for a thriving business. The business budget template usually captures the following information:
* Company Name
* Budget for Year
* Estimated Capital
* Approved Capital
* Projected Purchase Order Cost
* Invoice Amounts
* Sales Tax Amounts
* Freight Charges
But basically, the business budget needs to be precise about two main sections; that is, the income and expenditure columns.
The income column needs to record all monies that come into the organization while the expenditure column records how every dollar is flowed out of the organization.
If an organization has many departments, each department is required to draw up a departmental budget prior to the main business budget; this will enable the Chief Accountant to compile the departmental incomes and expenditures to come up with the total incomes and expenditures in a budget.
Consider the attached sample template for your convenience.