A budget is allocation of financial figures on estimation of expected costs for various expenditures, projects and processes. This budget can easier to organize in structural format with budget template. Hence, it most of the businesses are using the budget templates to manage their financial allocated amounts by structural way.
It is not specific whether you are managing the financial for your organization, home or business, you have to make budget to essentially organize your money. Actually, the budget is initial stage of financial management system, either you are doing this for yourself or business. Mainly you should know where your money goes, and where are the space that you can save more money. A budget gives an opportunity to organize your expenditures, and save the money by analyze all the potential expenses.
Actually there are two phase of budgeting
Usually, most of the businesses are creating the budget before any financial or project start. The budget may provide the detailed information about estimations for general expenditures such as labor charges, materials, supporting activities expenditures etc. This budget information is common for the most of the businesses. Even this is essential part of the budget management.
On first phase or common budgets
At the initial stage of the budget, most of the businesses are listing their expenditures or potential expenses which are necessary to spend for the business run smooth. Hence, this list of expenses will be part of the budget.
Normally, in the budget information financial department creating a list of each expense, identify their requirements, prioritize their needs for project completion and organize budget accordingly. Usually budget takes mostly two part in column, first is expenditure and second is allocation of figures for potential expense in amount. There are mostly includes:
- Details of project, activity or task
- The details of financial year or details of time scale.
- Categories of expenditures / project / task etc.
- Estimated amount for each category or expense
Even, you have to categorize the expenditures or project parts with specific details to easier for budget.
On-going support budget / Revision – Second phase of budget
The on-going support budget is the detailed estimation mostly needs to extending budget to support the on-going project or during the project. This is one of the important step which are require from the management to complete the project on time. Usually due to market situation, time scales, and due to some extra requirements, this task become necessary to establish for achieve expected outcomes.
Normally, this can be list any assumptions or clarifications pertaining to the costs which are require for the project. These estimations may extend the costs limits as present situations.
Work breakdown structure and budget
Normally, it is not necessary for the budget to creating work breakdown structure to allocate budget for any task. But when you creating a budget for the entire project, even the project may task and multiple phases and activities. Hence, the work breakdown structure may helpful to organize the level wise tasks to makes simplify the estimation of costs. Even more, makes it more comfort and easier for tracking.
As usual, work breakdown structure will be breakdown the tasks in multiple levels or phases, hence, estimation of the cost for each task or level will be more reliable and easy. Further, it will be makes also easier to identify the priority, categorization and monitoring.
When you want to allocate the budget for any project. You can use the work breakdown task for any particular tasks, even you can also define the categories such as labor cost and non-labor costs. Just list:
>> Task 01 – Level 1 / Level 2 / Level 3 …
>> Description of the level details to more specific information
>> Hourly / days details
>> Amount of level wise budget allocation
>> Labor costs details
>> Non-labor costs such as travel expenses, meals, etc.
In short, work breakdown structure is unique tool that may helpful for organizing the budget management for your project. Here as above example describing how the particular task, even cost of applicable expenditures can also uniquely possible to describes.
Using for management review – Budget comparison
Most of the businesses are using the budget to allocating the costs for particular activities or tasks. But this is not only use that may businesses can get benefits. Moreover, it can be advance use of budget sheet to comparing the status of the profit, that mean reviewing the actual profit to comparing budgeted expenses against the generated sales.
For the effective use of the business budget sheet, you have to identify and list out the details of sales, expenses and budgets to compare each one. The records of the sales against the budget may helpful to understand what really we achieved, and how the budget supporting the increment in figures of sales. This figures are very important for the management. However, the budget may cover the marketing expenses, and potential expenses for the development of the products. Even the management review will be conduct this data to use for the further improvement of sales to capture more and more market segments.
Free budget templates – Excel worksheet
A best budget template may give a best option to estimate your potential costs and expenditures for your financial system. Even more, it may help you categorize your expenses with specific and more reliable way. Actually with budget template there can be so many options that may give you flexibility, variety, monitoring and tracking functions as well reliability for system. Hence, here you can see some common templates that may fix your requirements for making an effective budget.
Excel budget template
When you want to create any template which having a lots of calculations, figures and numbers that you expecting to auto calculate. Then you should use the excel to organize your data to easier for calculate. Hence, budget is one of the important task which having a many calculations, numbers and information require to well manage automatically. So, here we made ready made excel budget template which having a unique information, auto calculations, and well-organized design for your business use. This ready made template may help you customize as per your requirements.
Monthly budget template Excel
Normally, most of businesses are creating a budget template for either monthly or annual. Hence, it is very important if you are targeting any specific project then you have to make monthly budget to easier for tracking, even understanding financial standing for future. Usually, monthly budget template is same as annual or weekly template, even contents of the budget template may focus on the monthly requirements, estimation of costs, and time period can be for month. Hence, this is very important sheet which may focus on budget requirements of on-going projects.