What is an annual operating budget?
An annual operating budget can help you keep your business finances on track and promote organizational growth. Learn how to make one with this helpful guide.
An annual operating budget, by definition, is a statement of expected revenues and expenses over twelve months. Knowing what to expect financially makes it easier to stay on track, achieve your goals, and manage unexpected expenses — so be sure to include every expected source of income, regular operating costs, and all your expected expenses.
How to create an annual operating budget.
Although it may take some foresight and research, it’s relatively simple to create an annual operating budget if you follow the steps below:
- Estimate your total operating expenses for the year.
- Estimate your total revenues for the year.
- Include contributions to your reserves.
- Determine expected net revenues for the year.
When creating your annual operating budget, be as detailed as possible. It’s best to itemize each expense and source of income, so you know exactly where the money is going to or coming from and when.
Make an operating budget PDF.
Organize your information using an Excel spreadsheet to make it easy to edit and read the information. Remember, anything can happen in a year. So be prepared for those moments when you may have to adjust your estimated annual operating budget.
Once you build your spreadsheet, create an operating budget PDF by converting your Excel file to share and collaborate with your team members. You can also learn about other ways to work with PDFs online to simplify teamwork.
Learn more about how Adobe Acrobat can help you create, share, and edit financial documents.