The budget which is prepared for the 12 months period, it examines the all incomes and expenditures which might occur in the coming year. It is used by the individuals, big organizations, government sectors, cooperation’s and various other organizations. It helps the creators to plan and make strategies to ovoid the expenditures of the coming facial year.
Tips and Guidelines for Creating Executive Summary for Annual Budget Planning:
Elements of Annual Budget:
- Projected Expenses: The amount of money which you project to be spent in the coming year.
- Projected Income: The amount of income which you project to earn in the coming facial year, in the form of revenues.
- The relation of Expense and Income: Sometimes some investors agree to give some fund on some conditions, if it comes so you have to make adjustments in the budget for that coming fund.
- Adjustments: The annual budget starts with estimation of the year. As the year pass on if any adjustment needed, your budget should be having flexibility to adjust it.
Estimating Cost:
Develop the ways that how you estimate your expenses. Make the list of the yearly expenses, total number of absolute requirements of the organization. This can be salaries, wedges, utility bills, phone bills, internet bills and insurance liabilities. Make the list of the projected expense which is due to be paid by the organization that can be loan payments, transportations and postage expenses. Make the list of unexpected expense which might occur in the coming year.
Estimating Income:
Make the list of all the funding sources from which you can get some income. The sources which are funding you already or which have promise you to fund in the coming year list them out. If the organization is having the community, estimate the fund which can be collected by the community. Estimate the income against the services given by you, if you sell any membership estimate the amount of income would be generated by the membership, the income estimation on the sold items. Enlist all the resources from which you can get some amount of income.
Adjusting Budget:
Figure out all the facts and figures into useful format, which might help you to understand that, what amount of money to be used for what expense. For that make tables, spreadsheets, graphs and charts. Compare your income with respect to expense if both are equal then the budget is balanced, if the income and expenses are not equal then you must need more money to meet your expenses. Try to be very stick to your budget, this would give you an ease to use the excess of money at the end of the year, for some emergency projects, unseen expenses or making some other vital adjustments. Invest in the stock exchange; buy the items at the end which you were looking to buy. If you have enough money in the bank then you can use it adjust your budget. You can save money by collaborating with other organizations. Expenses can be eliminated by cutting them down from the budget.