Budgeting is an important part of any successful business. It is a continuous process that runs throughout the life of business, although it is divided on a yearly basis and also on a quarterly basis. Flexible budget is also an important business activity that helps to evaluate the performance. The flexible budget format is a ready to use template that helps a lot in quick preparation of flexible budget for your company. It is usually made using spreadsheet software and is formatted in such a way that suits most of the organizations. It includes all the necessary formulae for calculation. The user just needs to download the suitable format and input the personal data to get personalized results. These formats are customizable and printable. After making required changes you can get a print of your plan.
What is Flexible Budget?
Flexible budget is an accounting tool that helps to evaluate the actual performance of the company in terms of cost, sold units, and revenue. It deals with the variations in the assumed revenue in the static budget and presents the true picture after calculating the variations. It is calculated by using different values from different levels. It finds the difference between the estimated revenue and actual revenue by considering different variations in the expenditures.
How to make Flexible Budget
For making a flexible budget, you can use a template that suits best to your requirement. Customize it by using your company name and company logo. Replace the headings with your personal data and insert the values.
You need to determine the following for preparing a flexible budget.
- Find the budgeted variable cost per unit and sales price of each unit.
- Conclude the fixed cost included in the budget.
- Find the actual revenue that is generated for the said period of time.
- Put these values in the format to create a flexible budget.