Budgeting ABCs

Budgeting is an important financial planning exercise that can help you project for your organization’s future, but this can be challenging if you don’t have experience.

Budgeting How To Worksheet

Whether you’re leading a small business or nonprofit, I would like to help you. First, I created a simple Budgeting ABCs worksheet which you can access here on Google drive.

Videos that can help you work through this process

Because I recognize that this may be unfamiliar territory, I have also created a series of videos you can use to help you perform the necessary steps to prepare your budget. Access those on YouTube here after you have made a copy of the Google sheet for your use.

Budgeting Tips

I have been budgeting for organizations for a long time. As such, I have collected lots of budget insights. Here are some budgeting tips I have found helpful.

  • First of all, in order to project future numbers, you need to start with a solid understanding of your current numbers.
  • Secondly, your budget should reflect your priorities and organizational objectives. If something is important to you, it should be reflected in your budget or financial plan.
  • Third, even if you are operating as a non-profit, it is wise to plan cushion into your financials. When you do that and you hit your revenue goals, that extra will be available for unexpected expenses or investment in growth for your organization or team.

Questions to think about

Here are some good questions you can ask yourself in the process of preparing your budget:

  • When comparing two years of financial activity, why is the most current year different than the year before it? Is the coming year you are planning for likely to be similar?
  • Look at the ratio of individual income and expense categories as a percentage of the total. When you use our Budgeting template, this is built in on Tab C. As you look these over, are you comfortable with the comparisons based on what is relatively important to you?
  • What do you want to do more of? What about less of? Spend more on? Spend less on?
  • How will you fund new items? To do that, you will need to identify things you can take money from. What can you spend less on to make room for things that are now more important to you?

If I can be helpful, feel free to email me! I have created a special email address for this activity: budgeting@amservicesgroup.com.

All the best!

I have written more on this topic here: https://ericsyfrett.com/thoughts-on-organizational-budgeting/