What is an operating budget?
An operating budget is a detailed projection of what a company expects its revenue and expenses will be over a period of time. Companies usually formulate an operating budget near the end of the year to show expected activity during the following year.
Who should use this free operating budget template?
An operating budget is used to plan and manage an organization's operational expenses and revenue for a specific period, typically for a fiscal year. An operating budget template can be beneficial for a wide range of individuals and organizations, including: business owners, nonprofit organizations, small and medium-sized enterprises (SMEs), educational institutions, and more.
Why nonprofits should use this operating budget template
Using an operating budget template is crucial for nonprofits to ensure that resources are utilized efficiently, mission-driven goals are achieved, and the organization operates with transparency and accountability. With the help of our operating budget template, nonprofits can build a solid foundation for financial sustainability and make a more significant impact on the causes they serve.
What is an operating budget used for?
Maintaining a healthy business requires careful financial planning and budgeting. Companies use a master budget to manage their cash and other assets, and to estimate their future sales and expenses. Master budgets are made up of two parts that work together: financial budgets and operating budgets.
Operating budgets, which are detailed plans that estimate how much income a company expects to make and what it thinks its expenses will be in the short-term, typically within a year. Companies normally use separate operating budgets to create plans for each area of their business.
How to prepare an operating budget template in Excel
Here’s how to create an operating budget in Excel:
Step 1: Download operating budget template.
Step 2: Enter revenue accounts.
Step 3: Enter fixed expense accounts.
Step 4: Enter variable expense accounts.
Step 5: Enter non-cash expense accounts.
Step 6: Enter monthly budgeted amount for all accounts.
The operating budget template should automatically calculate the sum of all accounts, as well as, net income, and variance of budget vs. actual. You can find more detailed instructions on how to use our operating budget template upon download.
FAQ
What is the purpose of an operating budget?
The purpose of an operating budget is to serve as a detailed financial plan that outlines an organization's expected revenue and expenses for a specific period, typically a fiscal year.
What information does an operating budget template include?
An operating budget typically include the following information:
- Revenue & total revenue
- Fixed costs & total fixed costs
- Variable costs & total variable costs
- Non-cash expenses & total non-cash expenses
- Monthly budgeted amount & total budget
- Actual amount & total actual amount
- Net income
- Variance of budget vs. actual
Can this project budget template be used in Google Sheets?
Yes, download our operating budget Excel template. Then in Google Sheets, follow these steps:
- Create a new or open an existing spreadsheet.
- Click File. Import.
- Choose the Excel operating budget template file and click Select.
- Choose an import location option:
Create new spreadsheet,
Insert new sheet(s),
or Replace spreadsheet. - Click Import data and you should have this operating budget template in Google Sheets.
