How to write a budget

A budget is a document that describes in detail the sources of expenditure of funds. It can be scarce when the funds are not enough, and surplus when the funds still remain. How to write a budget?

Instruction manual

1

Gather the necessary information. Find last year’s budget if you’re not a pioneer, and carefully examine its punctures. Also determine whether all articles are suitable for today. Ask for advice from colleagues, for example, about large upcoming costs and prospects for the development of the company. If possible, consult with specialists. Also find out the number of employees, the remuneration system, including and bonuses, adopted rules for the dismissal and hiring of employees. Be sure to discuss with the leader issues that cannot be resolved without a senior manager.

2

Make a budget. Define the articles of the main document and systematize them: sales forecast, production budget, inventory budget, commercial expenses budget, supply budget, basic materials expenses budget, direct wage budget, indirect production costs budget, prime cost budget, revenue and expense budget, revenue forecast, balance sheet forecast, investment project and cash flow budget. Describe as much as possible each of the sections of the main budget.

3

Write a budget with temporary certainty. Compose it best for a year and break it down by month. Describe possible solutions to each of the problems. Do not write down insignificant expenses in articles, for example, the purchase of erasers for office workers.

4

Design your budget in such a way that articles are easily perceived and would be the basis for managerial decision making. Break it into subgroups and arrange them in a hierarchy.

5

Coordinate actions with all levels of the organization. Each employee responsible for a particular area of ​​work must be informed of upcoming tasks and ways to solve it.