A company incurs various expenses on a continuous basis. Different companies have different policies with regard to the recording of their expenses; however, the recording also depends upon the type of the incurred expense. Some companies record expenses when they are incurred, when payments are issued, on a monthly basis, on a yearly basis, etc. No matter what way or policy a company is following, expense recording is a critical task, as the expenses directly affect the company profit.
Due to the number of expenses and the type of expenses, sometimes, it becomes a tiresome job to record and track all expenses of the company. In addition, companies plan for their expenses and have to assess by how much the budgeted expenses have varied from the actual ones. This is a significant part of the financial analysis and future planning. MS Excel smoothens this task for the accounting departments. The template is offered by this program helps in recording, tracking and assessing expense information.
What is the business expenses budget sheet template?
The template is an MS Excel spreadsheet that record and tracks all the details of expenses incurred by a company on a monthly and yearly basis. In addition, it has different sheets for the budgeted expenses, actual expenses, expense variances, and expense analysis. It is a predesigned template which is easily downloadable and customizable. It has inbuilt formulas to automatically calculate the expense totals and the expense variances.
[For Excel: xlsx & Polaris Office] [Size: 221 KB]
[OpenDocument Spreadsheet .ods] [Size: 274 KB]
The template has broad and sub-categories of expenses. This means that the expenses can be easily inserted with all the relevant categories, names, and details. The ‘expense variance’ sheet automatically calculates variances between budgeted and actual expenses. These variances are further analyzed in the ‘expense analysis sheet’ which automatically generates charts and graphs as well for financial analysis purposes.
Although, different companies have their own expense categories which they can easily customize this template for, the broad categories of the expenses used in the general template include:
- Employee costs
- Office Costs
- Marketing costs
- Training/travel costs
In addition, there is an additional sheet in this template with the name ‘start’. This sheet has details of how the template has been designed and provides an understanding of the template functioning as well.
How to use the template?
It requires almost no effort to download and customize this template as it is readily available and customizable. Once, the company updates and modifies all the expense categories and the fields for the template as per its requirement, the template is ready to be used.
First of all, the budgeted expense values are inserted on a monthly basis. Automatically, the template will calculate the monthly and yearly totals of individual as well as the overall expenses. After this, the values of actual monthly expenses, which are the costs that have actually been incurred and not just planned, are recorded. The yearly and monthly totals get generated automatically.
After these values are inserted, the main part of an accountant’s job is done as the template will calculate the rest of the values itself. The variance sheet will automatically provide an overview of by how much expenses have varied from their planned/budgeted value to its actual value on a monthly and yearly basis as well as on individual and combined basis.
These variances are then automatically used in the next sheet due to the in-built formulas and functions of the template. The sheet of ‘expense analysis’ can be used for the financial analysis and hence considered an important one. It not only presents the values of the variances or their percentages, rather, it also automatically generates charts and graphs to analyze the cost situation of a company. The company can use this information to manage its expenses better as well as plan in an effective way.
As the expense details are stated on a monthly as well as a yearly basis, the finance managers can easily evaluate the situation, which is further supported by the details of individual expenses. They can analyze different aspects, for instance, which expense has high variance and needs attention, etc. The template sheets and the graphs can easily be printed for analysis or record purposes.
Benefits of the template
There are many benefits of using this template which is why it is often opted for by the companies. Some of which are:
- It saves effort, time and costs.
- It is readily available and can be downloaded.
- It is easy to customize and update.
- It helps in recording and tracking all the expense details in a comprehensive way.
- It records monthly data which automatically provides yearly values.
- It has details of broad and sub-categories of expenses which can provide an aid in the expense analysis.
- The user can get an overview as well as detailed information about the expense scenario of the company just by having a glance at this template.
- It calculates variances between budgeted and actual expenses.
- The variances can highlight actionable fields to the financial managers.
- It generates graphs and charts which can be used for the financial analysis.
- The spreadsheets can be easily printed.
As it eases the accountant’s job and makes the company efficient, this template is often used by the companies globally.
We hope this article and the template will provide all the help required in recording and tracking your company’s expense details, along with their variances. We will be more than happy to answer any of your questions. Feel free to write to us and give us your feedback. Thank you!