Module 3: Preparing an Annual & Monthly Budget

This Budget Builder module builds on Module 1: Financial Foundations and Module 2: Key Financial Ratios to build a projected annual and monthly budget for your business. 

“Budget building”, is a key skill required to setting and tracking income goals, forecasting financials for lenders and assessing opportunities and investments related to scaling up. The budget is based on projected sales & expenses for the following categories identified in your chart of accounts (COA):

  • Income Accounts
  • Cost of Goods Sold Accounts
  • Fixed Expenses
  • General and Administration Expenses
  • Operating Expenses
Learning Objectives for Module 3:
  • Comptency in using information from your P&L statement to project expenses;
  • Understanding of which projected expenses are fixed, % of sale or another factor;
  • An Understanding of How to Use a Budget to Set and Track Income Goals;
  • Ability to develop an Annual and Monthly Projected Budget;
  • Capacity to Develop Standard Operating Procuedures (SOP) to Compare Monthly Projected Budget with your Actual Budget.
Upon completing Modules 1 – 3, you should be able to accomplish the following tasks for your business:
  • Clean-up your chart of accounts (COA); 
  • Update/Add Income Accounts; 
  • Update Action Plan for Sales Projections;
  • Create a annual 2023 budget;
  • Create a monthly 2023 budget;
  • Create a five year budget (2023-2028);
  • Setup a weekly, monthly and annual financial routine;
  • Get Setup to Work with a Book Keeper;
  • Get Setup in QB.

Course Content