FAQ on using budgeting templates in excel | LUZ Templates

FAQ on using budgeting templates in excel

What Should Be Included in an Excel Business Budget Template?

A basic business budget template for a small business includes five compulsory categories:

  1. Expected sales and revenue – the amount of money to be generated from sales according to an annual or monthly plan.
  2. Fixed costs – permanent business expense such as salaries, depreciation, property tax and utilities.
  3. Variable costs – the expenses a company endures, which depend on production output. These include costs expenditure on raw materials.
  4. Semi-variable costs – these expenses change but not in direct proportion to the activity of a small business. These expenses include phone charges, fuel, indirect labor and materials.
  5. Profits – calculated by subtracting all business expenses from expected revenue and sales. 

How to Use a Business Budget Template in Excel

Here is a step-by-step guide for a small business on how to use an Excel business budget template:

Collect data 

If you are not launching a new company, collect historical financial data first of all. This will provide a benchmark for creating estimations. If it’s a start-up, try to find financial information from small businesses operating in the same field.

Set up sales and profit objectives 

Estimate the scope of potential sales to further calculate your income. These projections should be realistic.

Calculate the expenses 

Work out your fixed, variable, and semi-variable costs. If your small business has been operating for some time, rely on your historical data. 

Determine the expected profit margin

Deduct your expected expenses from your projected sales and revenue for a given period of time. You can then assess the potential income your small business will generate.

Assess and adjust your business budget spreadsheet 

Keep your budget spreadsheet updated in Excel. This way, you will see whether or not your small business is likely to live up to your expectations. 


What Types of Business Budget Templates Are There?

LUZ Templates offers small businesses several types of business budget templates for use within Microsoft Excel:

12-Month Business Budget Template

This spreadsheet focuses on annual financial statistics. A small business can make income and expense projections for a year and analyze performance at the end of a given period. 

Departmental Business Budget Template

Large corporations often plan expenses for each department individually. They may depend on the income earned by a given department. This business budget template allows a company to monitor the financial state of individual departments. You can analyze the performance of several branches of a company in a single sheet to optimize overall business expenditure. 

Professional Business Budget Template

This Excel budget template allows a business to keep all expense-related information in one place. This spreadsheet includes a separate sheet for:

  • Estimated costs
  • Actual expenses
  • The variance between the two

Small Business Budget Template

This template, designed specifically for sole proprietors and small businesses, features all the basic financial information, including:

  • Income sources
  • Cash transactions
  • Expenses (fixed, variable, semi-variable).

Why Do You Need an Excel Business Budget Template?

A business budget template allows a small business to manage its finances effectively. This ready-made tool performs the following tasks:

  1. Keeping track of expenses and income
  2. Data-based budget analysis (quarterly or annually, depending on the requirements of a small business)
  3. Effective budget planning based on historical financial data
  4. Projection of small business revenue to cover estimated expenses in order to maintain profitability.

How to Create a Small Business Budget Plan? 

Compiling a budget plan for a small business may seem complicated. Here is a detailed guide with five simple steps:

Set Your Total Budget

The total budget is the amount of money you are ready to allocate for your business-related expenses within a given period. It’s a crucial factor that will determine which expenditures your small business can afford.

List Your Initial Expenses

Consider the compulsory costs your small business must incur in order to start operations. When you list all these expenditures, sort them to eliminate any non-compulsory ones. Your goal is to minimize the total sum without negatively impacting business operations.

Estimate Your Losses

Any small business has to survive for some time without generating income until the point at which it matures. To estimate your losses, you need to calculate:

  • Monthly overhead expenses 
  • Time before your company reaches ROI.

Think about a Safety Cushion 

Actual expenses often exceed projections. As a result, you can find yourself on the verge of bankruptcy before you even enter the market. A financial safety cushion will be useful in such a situation. Therefore, allocate some additional budget just in case. 

Tighten Your Budget

Analyze your Excel business budget template to determine which expenditures can be decreased or eliminated. This will not only improve your financial health but also increase your potential income.