In order to form a budget, it is necessary to carefully study the business plan, as well as financial, investment and marketing plans. Without understanding where to expect income, as well as without calculating fixed and variable costs, it cannot be formed. Rather, such a budget will not correspond to the real state of affairs in the company.
It is necessary
- -Business plan;
- -Financial plan;
- -Investment plan;
- -Marketing plan.
Instructions
Step 1
Analyze the sales for the last quarter, make adjustments to the data, as a result, you will receive a forecast of the expected profit. Adjust past fixed and variable costs so you know what costs are ahead. The difference between receipts and expenditures will show whether the firm has a budget deficit this quarter. To pay it off, you need borrowed funds. In the event that earnings prevail, schedule additional payments to investors to pay off the debt. This is the so-called "book" or projected budget. The company should focus on it when conducting its business processes.
Step 2
Make adjustments to the budget if there is a deficit already at the stage of the projected budget, and there is nowhere to get borrowed funds. It is not easy to make such management decisions, but it is better to worry about everything in advance, for example, by reducing the staffing table or renting out some of the extra space. As options, you can revise the cost of products, raise the margin, and use additional forces to increase sales. As a last resort, think about inviting an anti-crisis manager for a while. Any financial problem is easier to prevent than to face it after the fact.
Step 3
Calculate your actual budget based on your quarterly performance. From it you will learn how things actually were at your enterprise. A slight difference between it and the "book" budget is quite normal. For example, one of the clients did not pay on time, or vice versa, the account received payment for future deliveries. But if the difference is significant, look for why it happened. If you do not analyze this, there is a high probability of drawing up erroneous budgets, as a result of which a lot of unpleasant things can happen, up to the bankruptcy of the enterprise.
