The Benefits of Budgeting with Budget Templates Part 2
This article focuses on part two of the importance of budget templates series.
We’ve covered various types of templates such as assumptions templates, capital expenditures templates and more to help organize your budget. Another template that is commonly used across most organizations is an expense budget, which allows for input for accounts that have not yet been budgeted through other templates like personnel and capital.
There are templates that are more specific to the industry or built towards the particular specifications of the organization. Typically these templates will be the revenue and cost of sales templates. There are probably many templates that are being used today such as the final industry template which is a commission template and it calculates the monthly salary and commission by employee. The template can include employee termination as well. It’s very important to try to use a few templates that can be designed and used across the entire organization.
Tie to Goals
Tie the budget back to your company goals. If your goals and your budget are not consistent, then what truly are the goals for the company to achieve? Goals should be communicated to the entire organization so that the budget is consistent with the goals and there is no confusion among the staff.
Here’s a tip: There are a few ways to assist the users in knowing the goals and initiatives while entering their budgets and forecasts. It is one thing to communicate it in meetings and in documentation, but it is much more effective to include the information directly in the template.
Top-down budgeting is a valuable first step in the budgeting and forecasting process because it allows a limited use of resources to quickly create a budget or forecast early in the process and also allows for a comparison to the bottom-up budget, which can take months to complete.
There are several ways to create a top-down budget, but our team has come up with a solution that will enable a top-down budget to be created in minutes. It is a called a Breakback template.
If you want to learn more about these templates, click