How to Prepare a Forecast Budget Sheet

A forecast budget sheet is an easy way to work out your expected budget for the next year. This sheet may be required by different departments in a company or can help you to determine your salary if you own your own business. It also helps to keep your spending in check, since you are planning your budget many months in advance.

Gather together your financial records for the last year. Looking at your previous expenses is a good way to start with an estimate for each month. Generally, events happen at the same time each year that may require extra money. Additionally, you may have insurance and other expenses due once a year that you will need to include in your budget, and having a list of expenses for the year will help you plan for that.

List any promotions or other expenses that you are planning for this year. Next to each event write down the expected cost. This list will help you add these events to your new budget. It can also help you to trim back expenses if you are over the budget or need to find more money for another event.

Look at last year’s expenses and subtract any that you will not have this year. These types of expenses may be purchasing new office equipment or replacing an air conditioner in the building. These costs generally do not repeat every year. You may want to set up a slush fund that you contribute to each month to cover these types of expenses; if so, figure up the annual cost and divide it by 12 for your monthly budget.

Add together last year’s expenses plus 10 percent for the operating costs for each month. Then you need to add the amount from the events list. This will be your total monthly expense forecast.

Adjust the categories if you are over the allotted budget amount for each month. You may need to reduce the amount you spend on promotional events or you may need to eliminate spending categories all together.

Tips

  • If you need to fill out a monthly budget forecast sheet that includes how much revenue you will bring in, then you should look back at the past year’s income reports and make your estimates off of that. If it is a slow economic time, you may need to reduce this by 5 percent; if it is a good income year, you can set a goal to increase it by 5 percent.

    It is important to conduct regular audits of your expenses and income in order to stay on track with your monthly budget forecasts. These can be done once a month or weekly if you are having trouble staying on budget.