Annual operating budget by department
Budget each department's costs month by month for the year, and compare the total with your income budget.
A budget sets spending before the year starts. List each cost line with its department and enter the monthly amount for the year, and the workbook totals each line, each department and each month, and compares the total spending with the income you expect to give the planned surplus or shortfall.
Owners and finance managers preparing the annual budget, and department heads who must stay within it.
What is included
- Cost lines by department
- Yearly total for each line
- Totals by department with a chart
- Planned surplus or shortfall at the top
- Room for 200 cost lines
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How to use it
- Type the income you expect for the year at the top.
- List each cost line with its department.
- Enter the planned monthly amount for the year.
- Read the total by line, by department and the planned surplus.
Templates are tools to help with your own records. They are not tax or legal advice. Check the figures against official sources before filing or paying.
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What the annual operating budget by department does
A budget sets spending before the year starts. List each cost line with its department and enter the monthly amount for the year, and the workbook totals each line, each department and each month, and compares the total spending with the income you expect to give the planned surplus or shortfall.
Who it is for
Owners and finance managers preparing the annual budget, and department heads who must stay within it.
How to use the workbook
- Type the income you expect for the year at the top.
- List each cost line with its department.
- Enter the planned monthly amount for the year.
- Read the total by line, by department and the planned surplus.
- Save a copy under a new name for each month or year, so earlier records stay as they were.
What is inside
- Cost lines by department
- Yearly total for each line
- Totals by department with a chart
- Planned surplus or shortfall at the top
- Room for 200 cost lines
The workbook has these sheets: Instructions, Budget, By department. The main table has the columns Cost line; Department; Monthly amount; Months; Yearly total. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.
Tips for getting it right
- Base the budget on last year's actual costs.
- Ask each department to justify its lines.
- Compare actual with budget every month.
- Hold a small reserve for the unexpected.
Why keep this record
Running a business on memory works until it grows. Writing the numbers down turns opinions into facts you can compare month to month, and shows early which products, customers or costs deserve attention. Even a simple workbook, used every week, usually beats a sophisticated one that is opened once a year.
Questions people ask
Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.
Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.
Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.
Keeping it safe and up to date
A plan is only as good as the numbers you put in. Start with honest estimates, update the workbook as real figures arrive, and compare the two so your next estimate is better. Save a dated copy each month so you can see how your thinking changed.
Read how to build a cash flow forecast for the wider picture. Free calculators that go with it: Corporation tax calculator. See more business templates or ask us for a custom one.
The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.
Related guides, calculators and templates
- Free calculator: Corporation Tax Calculator
- Guide: How to choose accounting software for a small business
- Guide: How to run a month-end close for a small business
- Guide: How to read a balance sheet: a guide for small business owners in Kenya
- Another template: Simple business valuation estimator
- Another template: 12-month cash flow forecast
- Another template: Break-even and pricing calculator
Need something different? Request a custom template, browse all guides or see every Excel template.
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