Yearly Budget Template

Updated on April 17, 2024
Article byWallstreetmojo Team
Reviewed byDheeraj Vaidya, CFA, FRM

What Is Yearly Budget Template?

The yearly budget template has been considered a vital tool for the success of any business. It has been used to create, monitor, and manage various industries and businesses, from as small as a single project to annual budgets. With the help of the yearly annual budget template, the companies, for instance, could manage money very efficiently, resources are allocated appropriately according to project requirements, and one can monitor annual performances.

What Is Yearly Budget Template

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The budget template helps in meeting the objectives and improving the decision-making process. Moreover, it could reduce the obstacles even before they cropped up by identifying during the process of preparing the annual budget, for instance, the required finance to meet certain predefined expenditures.

Yearly Budget Template Explained

The yearly budget template is a document or format that is commonly used by both corporates and individuals for planning budgets and setting financial goals. This yearly budget template excel document can be designed in Microsoft excel or downloaded from various site, where there are many readymade templates available for instant use. The are in standard format but can often be customised as per the business requirements.

It is obvious that every organization has to set their own financial goals for the entire year keeping in mind the available resources and different investment plans where they may be invested. It is equally important to save a part of the fund for meeting unforeseen contingencies so the business can once again carry on in its usual way.

Some basic characteristics of a budget template designed fro the entire year is given below:

  • Every business has concerns about the future because things or events in business will not turn out as expected. Preparing the yearly budgeted to ward off this financial statements problem could help meet the desired objectives using spreadsheet templates.
  • The spreadsheet template is a matrix of columns and rows that can be loaded on the computer and seen on the computer screen simultaneously. The cell, an intersection of rows and columns, could be used to insert any numbers, formulas, equations, and descriptions if required.
  • A simple or financial budget model can be made using the spreadsheet template to exhibit the monthly or yearly numbers.
  • It includes all the required elements of income and expenses over a period, which is mostly a financial year or quarter; it depends on the requirement and size of the business. For instance, the yearly budget income statement can be made.

It is equally useful for individuals who can use it for managing and tracking their personal expenses. Thus, this template helps in easy organization of financial resources.

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The significant elements of this personal yearly budget template are below. Each component of the budget template is critical as they provide vital information on which decision one can make for the desired profitability and future investments.

#1 – Name of the Company

Name of the company for which this template is being made.

#2 – Collecting Historical Information

Any historical information can be input according to template requirements, but we have not considered any historical information in our budget template.

#3 – Revenues

Revenue divides into different sources of income from which a company expects to derive income, like interest income, dividend, other income, etc.

#4 – Expenses

Expenses divide into several components according to the nature of expenditures expected to be incurred by the company under consideration.

#5 – Calculation of Net Income Margin

Net income or profit is determined by deducting the expected expenditures from revenue.

#6 – Adjusting the Budget

One could adjust the figures in preparing the yearly budget according to budget requirements.


Let us understand the concept of personal yearly budget template with the help of a suitable example, as given below:

Free Yearly Budget Template

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We take the example of ABC Corporation which gives a very detailed overview of the concept along with clear break-up of each section. The above image shows that at first the profit is calculated and analysed for any variation or deviation from the forecast along with the percentage change. This business yearly budget template is a very good starting point which gives an idea about how to approach with the budget, stating each revenue and expense item that leads to cash inflow and outflow within the company and the analysis of the same.

It is important that every business should not only record the income and expense in their books but also keep track of how the income is being utilized within the entity. It is often seen that there is a lot of misuse and overspending that takes place, leading to deviation from the actual budget. Such areas should be identified where cost control is possible, in order to save that money for utilization in other important and productive areas or processes of the company.

How To Use?

The business yearly budget template is a clear visual representation all the cash inflow and outflow within a business or a household and can cover all all types of income flow like sales, return from investments, dividends, receivables and all types of outflow like expenses related to payables, stationery, office furniture, maintenance, entertainment, travel or any personal expense like college fees, celebrations, medical expenses, etc. It does not require any great skill to use it but just the urge to save through planned usage of financial resources.

Here we will learn how to use the template in the best way possible.

  • The business must update the budget and adjust if needed to check this template’s actual benefit. However, reviewing this template can indicate where efforts are needed, and the business has been doing well to align with the year-end objective.
  • For instance, in our case study, if we reduce the insurance charges in any month, we could see the impact of the same at the end of the year.
  • In addition to this template, the person monitoring the template should have information about the potential issues that could impact the revenues or expenses, enabling the members to adjust the budgeted figures accordingly.
  • A template review could indicate where efforts are required to generate the required rate of return on profitability. In addition to the yearly review, a monthly review can also assist us in identifying potential issues.
  • For instance, we could increase the advertising expenses in the festival season to take advantage of the same and the subsequent impact on the revenue. For shelling out the income tax on the profit the business generates, tax planning requires performing before paying tax to the tax authority.
  • In the budget template, as provided above, we have laid down the income statement with the various components according to the nature of company transactions. In our case study, the illustration income statement includes multiple line items and revenue. It is income from the core activities of the company. In addition, it includes various other sources of income, like income from interest on the money deposited in the bank, income from dividends, investment income, and other income.
  • In our template, we reduced the expenses from revenue to arrive at the net profit generated from the business operations. Expenses include several line items grouped into general and administrative expenses, sales and marketing, and research and development.
  • Our budget template has provided budget and actual numbers for the accounting period 2018-2019. We have also provided two additional columns in the cell (D3: D40) and (E3: E40) to analyze the impact of the difference between budgeted and actual financial numbers.
  • We can try different scenarios in our yearly budget template and see the same impact. For example, suppose the management of the company wishes to achieve the desired level of profit margin. In that case, the management can try to reduce line items and analyze the immediate impact.

It can be beneficial whether the business is small or big. With the budget template, the management can have an idea of inflows and outflows of cash. If the company is already well established, it is easy for the management to track the operations and make the budget as the management expects the financial number to be in line with the last years, say 3 or 5 years.

But there are circumstances where a well-established business can run into problems if the budget template ignores the unexpected expenses; however, it depends on the size and nature of the company’s industry.

The management should ensure that they include all the possible line items in the budget template to ward off the negative result of the budget template to achieve the desired profit level.

Yearly Budget Template Vs Monthly Budget Template

Both the above are related to templates that are designed for planning the budgetary needs of both corporates and individuals. But there are some noteworthy differences between them, as detailed below:

  • As the name suggests, the free yearly budget template is related to template that are designed to keep track of finances for the entire year but the latter is just for one month.
  • From the above topic, we can derive the fact that the former will provide details and plans for the entire year whereas the latter will provide information for only a very limited timeframe. So not much planning data can be expected form the latter.
  • The free yearly budget template is typically for long term needs and requirements whereas the view for the latter is for short term.
  • Big business can usually opt for the former because they usually have a long list of financial data and various sources of income and expenses. Thus, their budgets and investment plans are also very huge and detailed. The opposite is the case with the latter, which is more suitable for small businesses, where the number of transactions will be very less with lower amount. Thus, budgets can be frequently designed and altered without much of a hassle.

Therefore the above are some important differences between the two kinds of budget template.

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This article has been a guide to what is Yearly Budget Template. We explain its differences with monthly budget template, elements, example & how to use it. Also, you can download and use this template in CSV, Excel, or ODS format.

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