With this application, you can conduct "Expected Case", "Best Case" and "Worst Case" budget scenarios.
Enter Company Name and select year from dropdown.
Default percentages have been entered for all line items shown. Customize those percentages to fit your business model.
Some line items shown will be a constant, or fixed, period expenditure (think “Construction Supervisors”, “Owner and Admin Compensation”, and possibly “All Other General & Administrative” expenses). For those line items, select “Yes” from the dropdown under “Use Fixed”.
If you do not wish to budget for any line item, simply enter “0” in that space.
Then begin entering expected revenue per month in the green cells under month names. The app will begin apportioning the expenses for each month.
Break-even levels are calculated progressively for each period.
Admittedly, this is a relatively simple budgeting process. However, it will provide insights into the finances for the coming year.
While creating a budget for an entire year is the norm, you can also create the budget based on a shorter timeline. Create the budget for six months or even quarterly to get a better idea of what to expect.
Changing your entries (Expenses and Revenues) will provide “What-If” scenarios for consideration. Try to get to a budget that makes sense for your company, and then make the management decisions necessary to make certain your company is profitable.
Be sure to save the file so it can be accessed and updated as needed.