How to Create an IT and Software Budget in Google Docs?
According to WLF Accounting & Advisory, budgeting is the root of a company's success. Budgeting enables companies to maximize their profits, minimize expenses, and have a detailed and accurate cash flow and keep the finance intact. So to ensure that your IT and software business will achieve success, always establish a budget regularly, be it for projects or everyday expenses. Our simple yet effective guide below will help you.
1. Identify Financial Resources
As a start in creating the budget plan, you must first determine where to get the financial resources. You have to assess whether a resource can generate sufficient finances for the budget. Without identifying your resources, it's impossible to begin budgeting in the first place.
2. Determine the Expenses
After determining the financial resources, list down all the necessary expenses that must be a part of the budget. Make sure to take note of every expense to avoid derailing the budget plan in the long run.
3. Classify the Expenses
Unlike a personal budget, the expenses of company budgets are a lot more sophisticated. Whether you're budgeting for a project or day to day operations, their expenses have many denominations. That said, you must categorize them so that they'll be easier to keep track of.
4. Allocate Accordingly
In this process, you'll now be doing actual budgeting. When calculating and allocating a budget for each expense, you can use a separate sheet or spreadsheet and integrate them into your budget document afterward. If you're going to use Google Docs, you can use Google Sheets to calculate and allocate budget.
5. Set a Budget for Contingencies
During the progression of a project or an operation, problems may arise that'll hinder your company's desire to reach its goals. In resolving those problems, expenses must be incurred. So as a contingency plan, make sure to include enough budget to eradicate issues.
What Is an IT and Software Budget?
An IT and software budget is a form or document showcasing the breakdown of an IT and software company's expenses. The budget could be for their operations, software development projects, and other innovations.
What Are the Types of Budget?
In general, there are four types of budgets that businesses use:
1. Value proposition budget
2. Zero-based budget
3. Activity-based budget
4. Incremental budget
What Are the Best Software for Budgeting?
Using a budgeting software will help you in coming up with an accurate and effective budget. These are the best ones:
6. Personal Capital
8. Future Advisor
What Are the Common Expenses of Businesses?
Regardless of whether a business is small or big, its expenses are more or less similar to other businesses. Here are the most common expenses of businesses:
1. Labor cost
2. Promotion, advertising, and marketing cost
3. Office supplies
4. Tools, material, and equipment
5. Rent and utilities
6. Employee benefits and training costs
7. Insurance costs
What Are the Benefits of Budgeting?
Budgeting can work wonders to help a company achieve success in almost any aspect. Here are some benefits of budgeting that can aid a business:
1. Manage finances effectively
2. Allocate sufficient resources
3. Effective decision making
4. Foresee problems way ahead before they may occur
5. Helps in planning for the company's future
6. Regulate cost and expenses
7. Maximize possible revenue and profit