Free Budget Template for a Project
Project budget template refers to the budget that is prepared mainly by the companies working on the different projects to handle the finances by a person where the budget starts with entering cost budgeted pertaining to the different areas such as material cost, labor cost, Fixed cost, the miscellaneous cost for the period under consideration and then listing down the actual cost incurred during the period and lastly deriving at the variance between the budgeted cost and the actual cost of the different tasks of the project along with the variance of the project as a whole.
About the Project Budget Template
If a person is starting a project, then it involves different types of tasks for the completion of such a project. For completing each of these tasks, various resources will be required, such as material, labor, fixed cost, and other costs. So, for the planning of the project, the budget for such a project is required. The template, as given above, shows the budgeted costs expected to be incurred by the company concerning each of the tasks by dividing it into resource-wise.
Following are the different details that are present generally in the template:
#1 – Heading at the Top:
In the template, the heading ‘Project Budget Template’ will be mentioned. It will remain the same for all the projects and all the entities. This heading is mentioned so that the user will know the purpose for which the template is created.
#2 – Summary Cost of the Project:
This summary cost is shown at the top left corner, and it contains the details of the Total budgeted Cost during the period, Total Actual Cost during the period, and the total variance between the two. These figures will automatically be populated from the values in the below-mentioned steps.
#3 – Details of the Project:
The details of the projects are to be filled by the person preparing the budget by mentioning the Name of the Company, Project Name or ID that distinguishes the project from other projects, Name of the Project Lead, and the start date of the project.
#4 – Budgeted Cost Task wise:
All the budgeted cost will be divided into the following categories:
- Material Cost: It will be calculated by multiplying the number of units with the cost per unit.
- Labor Cost: It will be calculated by multiplying the number of hours with the cost per hour
- Fixed CostFixed CostFixed Cost refers to the cost or expense that is not affected by any decrease or increase in the number of units produced or sold over a short-term horizon. It is the type of cost which is not dependent on the business activity.: This will contain the cost incurred by the company against its fixed expenses.
- Miscellaneous Expenses: All the other costs incurred by the company will be considered under this category.
It is not compulsory to follow these categories strictly, and the same can be modified considering the applicable costs.
#5 – Actual Cost:
Under this actual cost incurred against each subtask and task will be mentioned.
#6 – Variance Cost:
A variance will show the deviation of the cost incurred from the budgeted one.
How to Use this Project Budget Template?
Following are the steps to use the template:
- Individuals using the template have to enter all the details as required in the fields that are not already pre-filled. It includes details of the project and the different types of budgeted costs concerning each task and the actual cost incurred for each task.
- For this, firstly, details of the project are to be entered.
- After that, all the expenses that the company expects to incur for the project will be entered. For example, against the subtask 1 under task 1 number of units under project and rate per unit will be entered, after that number of hours required and cost per hour will be entered, then fixed cost and the amount of the miscellaneous expenses will be entered. With these figured, the budgeted cost of that subtask will be populated automatically. However, one can modify the category in the template.
- After that, the total of actual cost incurred will be entered sub-task wise.
- From the above figures, the variance will be calculated automatically for all the tasks and subtasks and the whole project.
This article has been a guide to Project Budget Template. Here we provide you with a free downloadable project budget template to handle the finances by a person. Also, you can download and use this template in Excel, Google Sheets, or in ODS format.
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