February 27, 2014

Create Budget in Excel

How to create a budget in Excel
How can I create a budget in Excel? Why do I need a budget?
Every company big or small needs to work on budgets. You need to know exactly how much money the company has, how much money is coming in over a certain period and how much money is going out in the same period. You cannot just say we need 5 engineers. You have to specify exactly how much money you can spend on them and how much they need to perform to give the comoany an adequate return.

Fundamentally a budget helps to define and refine financial goals and helps to use funds efficiently.The budget also helps in decision making and future financial planning. Companies with different departments define them sometimes as cost centers or profit centers and each department can have its own budget. In fact, each individual in a company can be assigned a budget. Budgeting can be very useful for an individual also. If an individual wishes to maximize the power of her money, the first step is to create a budget. Doing this in Excel is quick and easy as you saw in the training video.

Further reading:
Pro forma business expense budget

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