All operating budgets for a commercial company follow this structure:
|Sale / Turnover
- Variable costs / used goods
= Gross profit
- Fixed costs
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
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 budget follows the structure explained above.
If you just have a few customers and suppliers you should download a 14 days free accounting software from Billy. In 14 days you will learn a lot about accounting in your new business. A great way to learn business admistration.
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