You would typically look at your Net Income to determine whether you will be able to expand your business, make large asset purchases, etc. However, this budget spreadsheet is mainly for comparing your operating income and expenses to make sure that in your normal business activities you are earning more than you are spending. One of the reasons for budgeting is of course to help you determine whether you will be able to afford upgrades, new construction, asset purchases, etc. 23 Free Small Business Bookkeeping Templates Smartsheet Contributor ApTry Smartsheet for Free Cash Book Template Download Cash Book Template Microsoft Excel Record debit and credit transactions in this double-column cash book template to monitor your cash balance. If you have any taxable expenses make sure to subtract those values from the Net Income Before Taxes before estimating your income tax budget. This helps you make a simple estimate of the income taxes, assuming all the Expenses are tax deductible. Income TaxesĪ separate section under business expenses calculates the Net Income Before Taxes by subtracting the Total Expenses from Total Income. If you want to perform a more detailed analysis for multiple products, you can insert additional rows and separate the sales and costs according to product, or you can use the bonus spreadsheet that is designed for performing a detailed analysis for multiple products. The Goods spreadsheet is set up initially to record total net sales for each quarter. A careful study of these costs can help you determine pricing for your products, which products are more profitable, etc. These costs are usually compared to the total sales. But there may be other costs that I dont discuss here. The costs associated with producing and purchasing goods are variable costs that increase or decrease with the volume of production and sales, such as wages for direct labor required to produce the goods, packaging, inventory purchases, shipping, and commissions. Please note, this is a comprehensive list of items you will need to consider as your business grows. In other words, a red value means you ought to take a closer look at it. Conditional formatting is used to highlight the Difference red if income is less than the budget amount or if business expenses are more than the budget. The Difference is calculated as Actual - Budget. ![]() If you add or move categories around, make sure to double-check the calculations, especially the SUM() formulas that calculate the totals and subtotals, to make sure that the right cells are summed. However, here are some things you should know and keep in mind as you use these templates: Double-Check the Formulas Related: All You Need To Know About How to Calculate Fixed Cost 2. For example, you may pay to renew a licence each year. These costs can occur once when starting the company, or regularly. Many types of bank charges can be claimed as an allowable business expense, though usually, they should be for accounts or cards in the name of the business. These business budget templates are pretty simple to modify and customize. Business fees Many organizations incur additional fees, like those for permits or licensing.
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