Featured:
Allergies
Grilling Guide
eHow Now Blog

How to Plan a Corporate Budget

Planning a budget is paramount to the continued success of any business. A budget allows managers to estimate and properly manage resources. Many components of properly planned corporate budget exist. All the pieces of the puzzle work together, and it is important to follow the proper steps while preparing budgets.

Things You'll Need

  • Accounting system or software Computer with spreadsheet application Pencils Erasers Paper
Show More

Instructions

    • 1

      Prepare the sales budget. The sales budget will be compiled using prior year information with various forecasting assumptions. The sales budget will be used to plan revenue and is the building block of the corporate budget.

    • 2

      Prepare the production budget. The production budget will let management know what needs to be produced and when. Seasonal issues, current inventory levels, staffing and other resources all will affect the production budget.

    • 3

      Prepare the purchasing budget. The production budget tells you what needs to be made, and the purchasing budget tells you what you have to buy in order to make it. Current parts inventory levels, purchase discounts available, and seasonal issues all will affect the purchasing budget.

    • 4

      Prepare the operations budget. This section consists of direct labor and all costs necessary to operate the facilities where your product is made. Operations costs will be higher in high production months and lower in low production months.

    • 5

      Prepare the selling, general, and administrative expenses budget. This part of the budget takes into consideration everything and everyone not involved in the production of the product. Marketing, human resources, legal and finance departments are examples of what is included in the selling, general, and administrative expenses portion of the budget.

    • 6

      (Optional) Combine the portions of the corporate budget completed in Steps 1 through 5 to one file. This will be your master corporate budget. Use the budget to evaluate corporate performance throughout the year.

Tips & Warnings

  • As circumstances change, be sure to update your budget.

Suggest item

Related Searches:

Resources

Comments

You May Also Like

  • Corporate Budget Planning

    Corporate budgeting is a critical exercise completed each year -- sometimes each quarter and month -- to project the revenue and expenses...

  • How to Develop a Corporate Budget

    A corporate budget is of paramount importance to the success of your company. A budget holds corporate decision-makers accountable by helping them...

  • How to Prepare a Corporate Budget

    Developing a sound corporate budget is vital to successful business operations. The budget plan establishes income and expense projections. It identifies the...

  • How to Make a Budget

    It is important to learn how to make a budget -- your financial success depends on it. Get into the habit of...

  • How to Do a Personal Budgeting Spreadsheet

    A Personal Budgeting Spreadsheet can be a great tool to track finances and personal spending. This spreadsheet can be customized for all...

  • Important Components of a Budget

    Important Components of a Budget. Whether you are in a time of economic trouble or you are living high on the hog,...

  • How to Make a Company Budget Plan

    Creating a set budget for a company should not be intimidating. It should, however, be planned in depth to achieve the maximum...

  • How to Create a Blank Budget Form

    A blank budget form can be used to track household finances, pay bills, manage spending, or increase savings for retirement. This blank...

  • Components of Budget Preparation

    Components of Budget Preparation. Budgets transform abstract goals into clear operational ones. They also help companies understand their resources, capacities ...

  • The Components of a Cash Budget

    To make your company a success, you must understand your revenue and expenses. A cash budget allows you to estimate and track...

  • The Corporate Budget Process

    The process of budgeting, which many corporations call planning, is an essential management tool that enables an organization to set goals and...

  • How to Manage a Corporate Planning Process

    Corporate planning is a process of deciding how to allocate an organization's resources--human, financial, facilities, and time--in order to give it the...

  • Corporate Account Manager Job Description

    A corporate account manager is a position that widely varies depending on industry. A corporate account manager can either be focused on...

  • How to Create a Training Budget

    Organizations have training needs that range from the simple one-on-one orientation of a new employee to the training associated with the company-wide...

  • Corporate Finance & Capital Budgeting

    Corporate finance aims to aid managers in maximizing the firm's profits by providing relevant financial information on which to base decisions. Capital...

  • How to Prepare a Budget Plan

    Creating a budget plan has several benefits---it can help you organize your individual and family expenses, track what is spent on unneeded...

  • How to Create a Company Budget

    Creating a company budget is a vital step toward establishing financial security and identifying shortfalls before they become a problem. The key...

  • How to Prepare a Company Budget

    Prepare a company budget for your business. Every successful entrepreneur and business owner knows the importance of creating a budget. Not only...

  • What Is the Main Purpose of a Budget?

    When you think of the word "budget," a sense of being restricted may come over you. You may envision having to tell...

  • How to Manage a Household Budget on Low Income

    It can be hard living on a limited amount of money each week for your family. When there's a failing economy or...

Related Ads

thumbnail
Featured