How to use the Excel business budget template
Follow the steps below to create a business budget using our Excel budget template.
1. Enter prior year information
Input the year-end total income and expenses into your Excel template to find the previous year's net income.
You can also refer to last year's financial reports, such as the income statement or balance sheet, to find this information.
2. Create a budget income statement
Look at your various sources of operating and non-operating income to approximate your total income. Make sure to include this in the budget column. When you have actual data, you can input that into the actual column to compare the difference. This will help inform any future budgets and financial plans.
3. Create a budget expense statement
Input all of your expenses, including operating, variable and non-recurring expenses, to approximate your total expenses. When you have actual data, you can input that into the actual column to compare the difference. For some expenses, such as your variable expenses, you may have to make an educated guess.
4. Determine total net income
To determine your estimated pre-tax net income, subtract your approximate expenses from your approximate income. Then, deduct an estimated income tax to arrive at your projected net income. It may be helpful to create multiple budgets based on different scenarios, taking into account various sources of income and expenses. To ensure accuracy, remember to update the "actual" column with data from the reporting period to see if you were over or under budget, and use this information to improve your next budget.
