Many small-business owners make the fundamental mistake of thinking that, because they are small, they do not need an annual budget. However, an annual budget can actually help a small business make more money. Your budget illustrates the relationship between the money you spend and the money you make. This helps you to quickly see the effect on your business when you spend money on certain things; which allows you to determine whether your investments are increasing your profit margin. The Business Budget Template is easy to use. You simply download it for free from this page and then save it into a folder. You can then use the budget to establish goals, identify problems, and recognize whether or not you can afford to implement changes.
How to Use the Business Budget Template
- First, open Excel and click on the folder where you saved the Business Budget Template. There are two work sheets, one for capital items and one for expense items.
- Second, open the work sheet for capital items. Here you will enter any item that affects your investment. This includes money you are putting into the business, money received from partners, and any assets purchased for the business.
- Third, open the work sheet for expenses items. Here you include all of your estimated expenditures. These might include salaries, rent or even loan payments.
Tips for Using the Business Budget Template
- Look at the two worksheets side by side. This will give you a snapshot of where your business stands at the beginning of year. You can then use this information to estimate how much you need to make in revenue, determine whether or not you can afford new equipment, or whether you can hire another employee.
- Refer back to the template throughout the year to see if you need to make any adjustments. For example, if you are spending more on utilities than you planned you may need to bring in some more capital.
- Keep in mind that some capital assets depreciate over time; the car that you bought for the business should not remain on the budget at full value from year to year.
Using the Business Budget Template can help you make business decisions that will lead to increased profits.
Download: Business Budget Template
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