Operating Budget Excel Template
Originally published: 08/05/2018 08:42
Last version published: 16/01/2019 09:14
Publication number: ELQ-32852-3
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Operating Budget Excel Template

A simple and easy to use operating budget excel template.

An operating budget includes ask revenues and expenses over a specific period of time (usually quarterly or annually) which an organization, company, or government uses to plan its operations. An operating is prepared in advance of a reporting period as a goal or plan the business expects to achieve.

Components of an operating budget:

- Revenue: usually broken down into drivers and components. One can predict revenue in a year by year basis, but generally more detail is needed by breaking revenue down into its underlying components. Revenue usually include volume and price.

- Variable costs: these are typically deducted after revenue. They are 'variable' as they depend on revenue and are often calculated as a percentage of sales. They generally include: cost of goods sold, direct selling costs, sales commissions, payment processing fees, freight, certain aspects of marketing, direct labor.

- Fixed costs: fixed costs are deducted after variable costs. These costs do not vary as they are mostly constant. Examples include: rent, head office, insurance, telecommunication, utilities etc.

- Non-cash expenses: includes depreciation and amortization. These expenses do not impact cash flow (apart from taxes), yet they will impact financial reporting performance.

- Non-operating expenses: includes expenses that fall below the Earnings Before Interest and Taxes (EBIT) or Operating Income. Examples include: interest, taxes, gains or losses.

- Capital costs in an operating budget: usually excluded from an operating budget. The term 'operating' refers to a statement of operations which does not include capital expenditures.

The template is designed so it’s easy to edit. All hardcoded numbers are in blue, and all formulas are in black. Be sure to edit only the blue cells with your own numbers, unless you want to intentionally change the formulas.

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