In order for a small business to thrive, a plan must be procured in order for the business to use capital and profits wisely in the operations of the business. One tool to organize the company’s spending for a certain period is called a budget.
Budgets are procured for specific periods like monthly, quarterly, or annually. The use of a budget worksheet is a must for small businesses that need careful planning and managing since it is still a growing business. Learn how to make an annual budget with the help of the following annual budget templates downloadable in Word and in PDF formats.
Annual Business Budget
Personal Budget Worksheet
Annual Training Budget
How to Make an Annual Budget for a Small Business
Small businesses need careful management, which makes having an annual budget is essential. To make an annual budget similar to the sample annual budget templates on this website, here are the steps you can follow:
- Look into your business’s industry standards. Before creating the budget, you must learn all the relevant information to the industry your small business belongs to. Take in to account how your business costs affects the percentage of revenue your business will likely to earn based on industry standards.
- Make attainable assumptions. Create objectives for the budget of your small business that is achievable. These assumptions will serve as your guide in making the annual budget.
- Generate a budget spreadsheet. You can follow two options when it comes to budget spreadsheets, as follows:
- Set estimates with latitude. As seen on any of the financial budget templates provided on this website, annual budgets include the estimates made in consideration of the assumptions generated by the management of the small business. There must be leeway on these estimates due to the factors of uncertainty within these amounts.
- Find ways to cut costs. In order to maintain the small business within the annual budget, you must look for alternatives in lessening your expenses without jeopardizing quality.
Annual Event Budget
Annual Sales Budget
Tips to Successful Annual Budgets
The following are some tips you can consider to gain success in the annual budgets of your small business:
- Establish the reasons for annual budgeting. Every small business has different reasons for creating budgets. May it be for events or for business as a whole, it is important to remember the purposes of the annual budgets for your business.
- Think of long terms goals in making the annual budget. Focus on the goals you want to achieve.
- Make sure that the annual budget is realistic. Make the budget as realistic as possible by defining the earnings of your small business annually. From there, make your assumptions for the budget.
- Procure accurate business data for certain periods. Be sure to generate accurate information to be referred to by the management like the payroll budget templates provided.
- Use budget tools you are comfortable with. You can make use of sample budget templates or budget software depending on the costs and the effectiveness of the tools you select when you make the annual budget.
Annual budgets for small business become references in conducting the business operations. With the aid of these annual budget templates, you are sure to have an effective annual budget outline for your small business.