An overhead budget is a list of operating expenses that a business must incur over a given period of time, regardless of actual revenue. This template spreadsheet will help business managers plan for fixed overhead costs. This will help management determine what expenses are needed and can help management plan for any budget shortfalls. This form comes with instructions on how to populate the spreadsheet as well as advice on how users can analyze and interpret the budget data produced by the spreadsheet.
GUIDELINES GENERAL Definition: An overhead budget is a list of expenses the business must incur during a given span of time in order to operate, regardless of how much revenue is made. Objective: The purpose of preparing an overhead budget is to determine what expenses are needed and how fast the expenses are being incurred. This helps the business properly plan its budget so that it can meet these future, static expenses. If cash shortages are revealed , financial plans must be altered to provide more cash until a proper cash flow balance is obtained. For example, customer discounts for pre-payments, more loan proceeds and/or more owner cash contributions. The Spreadsheet: This template allows the user to record all expenses that are incurred by the business, regardless of how much it makes in revenue (e.g., rent, utility costs, Internet connections, etc.). These should be expenses related to income-producing activities. The template allows the user to specify a length of time over which to make the calculations (i.e., the cost over the next year, divided into quarters). The entries listed in the spreadsheet will not necessarily apply to every business, and the user should adapt the spreadsheet to the particular business for which the projection is being made, with appropriate changes in the entries as required. Procedure: 1. Populate all applicable cells in the overhead budget's "Current Year" column. Cells that require your input are highlighted in BLUE. 2. Populate all applicable cells For quarters 1, 2 and 3. Cells that require your input are highlighted in GREEN. 3. The worksheet will automatically calculate the 4th Quarter figures and provide you with appropriate totals and percentages, by period. ANALYSIS 1. The cash position at the end of each quarter should be adequate to meet the expense requirements for the following quarter. If there is not sufficient revenue to meet the expenses of the subsequent quarter, then additional revenue sources and/or the reduction of expenses will have to be analyzed to meet projection needs. 2. The projection becomes more useful when the forecasted information can be compared with actual information as it develops. It is important to follow through and complete the actual columns as the information becomes available. Utilize a burn rate forecast to assist in setting new goals and planning operations for more profit. © Copyright 2013 Docstoc Inc. Overhead Budget Budget Budget Budget Budget Budget Current Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 100.00% 20.00% 35.00% 30.00% 15.00% Overhead Budget (Listed Alphabetically) Insurance Expense 15,000 3,000 5,250 4,500 2,250 Interest Expense 7,000 1,400 2,450 2,100 1,050 Legal & Professional Fees 40,000 8,000 14,000 12,000 6,000 Office Expenses 37,000 7,400 12,950 11,100 5,550 Postage 4,000 800 1,400 1,200 600 Refuse & Carting 2,000 400 700 600 300 Rent 65,000 13,000 22,750 19,500 9,750 Repairs & Maintenance 1,500 300 525 450 225 Salaries & Wages 75,000 15,000 26,250 22,500 11,250 Telephone 5,000 1,000 1,750 1,500 750 Utilities 4,000 800 1,400 1,200 600 Various Administrative Expenses 2,000 400 700 600 300 Total Overhead Budget 257,500 51,500 90,125 77,250 38,625 Overhead Budget Percentage 100.00% 20.00% 35.00% 30.00% 15.00% Instructions for use: Change values in column B, rows 5 to 16. Change values in row 3, columns D, F and H. Column J will automatically update. All other computations will update automatically. Values in row 20 should equal values in row 3. © Copyright 2013 Docstoc Inc.
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