How to calculate the budget
Video: How to Calculate the Budget Line 2024, July
The budget, whether it be family, state or corporate, has been and remains the main list of all expenses and incomes for the reporting period. Let's deal with his calculation.
Instruction manual
1
The budget is an extremely important and defining document.
It takes into account literally everything that relates to financial flows, both incoming and outgoing.
Usually it is compiled for a year. We will not turn to specifics: is it the budget of a company, family, or something else - the structure does not change significantly.
2
So, the main ratio laid down in the budget: income / expenses.
Carefully and seriously think about what guaranteed expenses you have to cover (rent, rent, taxes, etc.), what incomes are expected (interest, profit, investment, etc.).
Estimate whether or not you can allocate funds for development, which may require repair or replacement in the near future.
It would also be very useful to foresee possible reserve amounts that would be useful in cases of force majeure.
Assess the economic situation, forecasts for inflation, exchanges and more. We must not forget that the calculation should be carried out taking into account these indexation coefficients over the next year, and not use the data of the current period, because everything changes. Based on this, we can conclude that the budget is a computational document, but it has a substantial share of the forecast in its essence. Therefore, it is quite possible that adjustments will occur in it, and by the next reporting period you will be able to compare your calculations with reality and apply the experience gained to drawing up a new plan.
3
As a result, you may have a deficit or surplus budget - roughly speaking, whether you will be in plus or minus at the end of the year. It is not always the case that if you have a deficit, then this is definitely bad. Perhaps it is due to investments that can bring significant profits in the future, outside the period under review. The same goes for the surplus budget: yes, you still have the money, but think about whether they should be used, especially if you already have a backup article in your calculations.
