Yearly Budget Template | Free Download (ODS, Excel, PDF & CSV)

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Free Yearly Budget Template

The yearly budget template has been considered a key tool for the success of any business. It has been used to create, monitor and manage across 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 the requirement in projects and annual performances can be monitored.

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

About the Yearly Budget Template

Every business is concern about the future the reason being there are chances that the things or events in business will not turn as expected. To ward of this problem preparing yearly budgeted financial statements could some extent help in meeting the desired objectives by making the use of spreadsheet templates.
The spreadsheet template is a matrix of columns and rows which could be loaded on to the computer and seen on the computer screen at the same time. The cell which is 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.
This includes all the required elements of Income and expenses over a period of time 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.

Elements

The major elements of this template are described below. Each and every component of the budget template is critical as they provide vital information basis on which decision can be made 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 requirement but in our budget template, we have not considered any historical information.

#3 – Revenues

Revenue is divided into different sources of income from which a company is expected to derive income like, interest income, dividend, and other income, etc.

#4 – Expenses

Expenses are divided into the number of 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 has been arrived at by deducting the expected expenditures from revenue.

#6 – Adjusting the Budget

The figures used in the preparation of the yearly budget could be adjusted according to budget requirements.

How to Use This Template?

To see the actual benefit of this template, the business is required to update the budget periodically and adjust the same if required. A review of this template could indicate the extent where efforts are required and where the business has been doing well to be in line with yearend objective.
For instance, in our case study if we reduce the insurance charges in any month we could the impact of the same at the end of the year.
In addition to this template, the person monitoring the template should have the information pertaining to the potential issues that could have an impact on the revenues or expenses which enable the members to adjust the budgeted figures accordingly.
A review of the template 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 subsequent impact on the revenue. To shell out the income tax on the profit generated by the business tax planning is required to perform before the tax is supposed to pay out to 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, illustration income statement includes various line items on the top of which comes is revenue which is Income from core activities of the company and includes various other sources of income like income from interest on the money deposited in the bank, income from dividend, investment income and other income.
In our template, we have reduced the expenses from revenue to arrive at the net profit being generated from the operations of the business. Expenses include a number of line items that have been grouped into general and administrative expenses, sales & marketing and research & development.
In our budget template, we have 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.
In our yearly budget template, we can try different scenarios and can see the impact of the same. If the management of the company wishes to achieve the desired level of profit margin the management can try to reduce any line items and can analyze the immediate impact of the same.

Conclusion

It can be very helpful no matter 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 can make the budget as the management expect the financial number will be in line with the previous number of 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 industry the company is engaged in.
The management should make sure 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 level of profit.