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Example of an Operating Budget

All operating budgets for a commercial company follow this structure:

Sale / Turnover
- Variable costs / used goods
= Gross profit
- Fixed costs
- Depreciation
- Interests
= Profit

What is an operating budget?

An operating budget is a budget that tells the business owner how he and his advisors think his business will operate in the next 12 months.

From the budget you will be able to see if your company is earning money or if it loosing money? A very convenient knowledge. :-)
Understand more about the operating budget

Budget lines in a budget

Below you can find different types of expenses and each expense is shown in a budget line. Maybe your company does not have all the expenses. Then just delete the expense/ the budget line from the budget

Maybe you have another expense. Then just insert an extra budget line representing the expense in the budget.

The budget must reflect activities in your company, just like your account plan..

The Operating Budget

The budget follows the structure explained above.

Sale / Turnover

  • Sale of product / service no. 1
  • Sale of product / service no. 2
  • Sale of product /service no. … Estimate sale for each major product /service

Variable costs

  • Materials - raw materials and finished products which you use for production or sale
  • Salary - only for workers in production
  • Transport costs - and any costs related to transport of the raw materials and finished products

Fixed costs

  • Wages - for staff in shops and offices
  • Rent - for buildings
  • Electricity, heat, water
  • Renovation and maintenance of buildings
  • Cleaning
  • Car service/mileage allowance
  • Travel costs
  • Stationary telephone
  • Postage and charges
  • Mobile phone
  • Internet-connection
  • Website subscription/hosting and upgrading
  • Marketing/advertisement/advertising
  • Meeting expenses
  • Insurances
  • Computer equipment
  • Computer network
  • Leasing-expenses
  • Minor purchases
  • Maintenance
  • Accountant
  • Lawyer
  • Other consultancy
  • Unexpected costs (5% of costs)

Interest

  • Interest on bank loan
  • Interest on overdraft facility
  • Other interest

Write-off/depreciation

  • Plant/buildings
  • Machinery
  • Other things
You will find an excel spreadsheet with a pre-defined Operating budget at Download Center
 

- Read about Cash Flow Budget


Don´t wait for the perfect opportunity. Start taking action, based on what you have readily available: who you are, what you know, and who you know.
- Saras Sarasvathy, professor in entrepreneurship

Business Plan Budgets
Operating Budget
Establishing Budget
Example of an Operating Budget
Cash Flow Budget
Contribution Margin - Example
Calculate turnover and necessary sales
Personal Source of Financing
Financing Business Start
Sourcing from Banks
Investors and Others
Funding Capital
Organising the Company
Your Product / Service
Financing Start-up
Sales and Marketing
The Person Behind
Entrepreneurship Education