Today, Excel is listed as the leading spreadsheet program used to perform a myriad of mathematical, statistical, and financial tasks . Since, thanks to the different options and tools it offers, it simplifies the performance of all kinds of numerical calculations .
That is why, it is considered a program belonging to the Microsoft Office suite specially designed to meet the needs of professionals in the administrative and accounting field . Which is why, it allows you to easily create a budget .
Thus, there are many users who choose to make use of Excel to fulfill their work tasks and thanks to this, it will be very simple to process any type of budget for a business or undertaking . Next, we explain how you can do it and other information of interest .
What are all the expenses that need to be considered when budgeting?
At the economic level, a budget is defined as the amount of money that is required to carry out a certain project or face a certain number of expenses necessary to achieve a goal or objective . In this way, it consists of an anticipated value that allows estimating the total cost that the realization of a specific plan will entail .
In this sense, the main purpose of a budget is based on defining and / or establishing an economic policy around the financial expenses incurred . Therefore, it is important to list all the possible expenses to be made and thus, record them in this document . Therefore, when creating a budget for any company, business or undertaking, it is necessary to take into account certain aspects in order to obtain quality results .
Therefore, here we specify each of the costs to be assessed in these cases:
- A list of monthly income .
- A list of the fixed expenses that must be made during each month.
- An inventory of expenses that vary by month .
- The cash flow in its entirety.
- A calculation of the difference between expenses and income .
Apart from that, it is also recommended to comply with a set of phases or stages to make a budget in a satisfactory way .
Here we mention each of them:
- Establish financial goals, as well as set the debts that have to be paid and specify the expenses that you are trying to save.
- Identify current income and expenses before creating a consumption plan.
- Indicate everything in the expense budget, including current expenses and savings necessary to obtain the project to be completed, as well as capital goods, direct labor, raw materials and taxes.
- Put the budget in motion, that is, start with your applications to monitor the spending plan favorably. This will work to manage account balances and track expenses.
- Evaluate or study the budget periodically and with it, be able to determine if something is not working correctly.
Steps to create a budget in Microsoft Excel for your startup or business
Once all the above has been detailed, it is time to know each and every one of the steps that must be followed to create a quality budget for any business, from the comfort of Microsoft Excel .
Taking into account that, there are two ways to proceed and, basically, they are through a pattern and manually:
With a template
In their day to day, freelancers have to handle all kinds of financial information to start an optimal business and with it, create budgets, compare supplier prices, know how much money they get and how many expenses there are to ensure great control. Therefore, it is very useful to work through Excel compatible templates for that .
In this way, we teach you how to proceed in these cases so that you do not have to prepare your financial budget manually:
- The first step to follow is to find and download a budget template in .xlsx format to use directly in Excel .
- Once you download, you have to access a blank spreadsheet of the program and open the downloaded template. To do this, click on the “File” tab, click on “Open” and then select “Browse” to search the folders on your computer and double-click on the document in question.
- Now, automatically, you will see the template in your Excel document . Therefore, it will be time to modify and / or edit each of the fields provided, according to your type of budget and all the information you need to highlight.
- In addition, making use of the editing tools that Excel offers, you can easily customize the template to your liking .
As you can see, it is a very easy method to carry out, as well as practical; to prepare any amount of budgets from Excel, just by obtaining templates hosted on the network.
On the other hand, there are many users who, unlike using a pattern to create their documents, prefer to do it manually for greater customization .
That is why, it is also relevant to explain the steps that must be followed to make a professional budget in Excel manually:
- Initially open a blank workbook within the program, then click cell A1 to enter the title of your budget page there .
- Followed by that, click on cell A3 of the book and add the following “Articles, elements or parameters” . In order to do so, include each of the sections to take into account, in the form of a list.
- Now, directly in cell B3, proceed to write “Earned income” . In that column, put the corresponding purchased tickets for each item.
- Then, in box C3, enter the term “Expenses” . Of course, in this list, you have to place all the consumptions made by each section in a proportionate way.
- Once the budget table is created, you will see the list that you have created with your income obtained and expenses incurred. Taking into consideration that each of the figures that you add there must correspond to the same period of the month under study .
- Additionally, if you want to adjust the format of the entered values and have them displayed in decimals, we recommend you go to the Excel toolbar and select the option “Increase decimals” in the Numbers group. We also advise you to choose the accounting number format (type of currency) in that same group.
- To calculate the total income obtained during that period of time, you only have to click on the last cell of column B to select the option “AutoSum” in “Start> Modify group” and select “Sum” to press the key. Enter and get the result in that box.
- Later, you can do the same procedure with column C that belongs to the expenses incurred . That is, placing yourself in the last cell of that group, to carry out the previous procedure.
- Now, in cell D3 you can enter the term “Net income” to know how much budget you have, for each parameter studied.
- Next, to perform the calculation, click on box D4 to enter the “=” sign, choose cell C4 and add the “-“ sign to select cell B4 (as shown in the image). So, when you press the Enter key, you will know the net income for that parameter and thus, you must proceed with all the others on the list.
- In case of obtaining negative results during any of the previous operations, the box will be displayed in red format automatically and the result with this sign . When you obtain all the net income, you can make the total sum of the same as we explained before.
- Finally, if you want, you can also customize your budget table easily. In this case, select all the lists by dragging the mouse cursor, to click on the “Insert” tab, select “Table” and proceed to edit its appearance or styles with the tools that the same program offers you from the tab ” Table Tools> Design” .
List of the best templates to make custom budgets in Excel
In case you are one of those users who prefer to make their personalized estimates using a template compatible with Excel, for reasons of ease and / or productivity, it will be much more useful to have these documents on hand to download .
Therefore, below and in the form of a list, we present some interesting alternatives to prepare quality budgets:
Basically, it is a pattern that serves to control each and every one of the income and expenses that a person makes in their day-to-day life . In this way, it offers the possibility of making a comparison between the forecasted income and expenses relative to the real ones .
Regarding its characteristics, we distinguish that it has a section to detail the income and another to fix all the expenses . It is also capable of calculating the deviation between what was established and what happened from the lowest level of detailing to the grand total. Fortunately, it can be used for different time periods (weekly, monthly or yearly) and it is also possible to edit this pattern.
It refers to an ideal template to carry out an optimal and timely follow-up of your expense distributions at a completely detailed level and in a simple way . Since, it allows to register all the expenses month by month and both by category as well as by associated subcategory. So, each elapsed month will show the total expense, the maximum expense and the minimum expense made .
In addition to this, this budget template for Excel has totals and percentage of expenses with annual opening by category, in order to make a more exhaustive study. It also has a report sheet where it adds all the values of each group and subgroup on a monthly basis and even shows a quality control alert that warns of any error when the totals do not match.
This is a marketing plan document that is written in terms of costs, basically . In this way, it helps to properly monitor marketing spending by identifying what remains of the budget to consume during the rest of the year and, therefore, facilitates a good analysis of what is spent on marketing .
Among its most interesting characteristics, we highlight that it has a sheet that allows you to list each of the marketing media along with its assigned net budget . Additionally, it has a page of descriptive reports of the budget open through marketing and allows to measure the budget at an absolute and percentage level .
It is a document that allows obtaining an a priori estimate of a construction work and thus, it is based on the forecast of costs by adding a profit margin . Taking into account that, thanks to its characteristics, it is ideal to have as real an idea as possible of the expenses involved in the project in question .
For its part, it has a sheet where it summarizes the cost per concept, it also has a sheet where each parameter must be detailed with its unit and total value, it allows adding more items to consider other aspects and it is a template that can be edited or easily modify .
Based on this type of budget, anyone can determine or estimate the future of their business by planning the activities to be carried out . Well, generally, it is a template that is used to make forecasts about the production, costs and sales that you have to approximate for your business over a period of one year . Therefore, apart from considering the internal context of the company, the user must also assess what happens in the market in general.
Since the total calculation will depend on the future demand that is estimated . Now, distinguishing its most important characteristics, we find that it is necessary to enter the production volume that is appreciated for the following years for each product and the price and cost of each item to be sold must also be added . All this will allow you to obtain the approximate sales value and the profit margin (with absolute value and in percentage).