A careful study of these costs can help you determine pricing for your products, which products are more profitable, etc. These costs are usually compared to the total sales. The costs associated with producing and purchasing goods are variable costs that increase or decrease with the volume of production and sales, such as wages for direct labor required to produce the goods, packaging, inventory purchases, shipping, and commissions. In other words, a red value means you ought to take a closer look at it. Conditional formatting is used to highlight the Difference red if income is less than the budget amount or if business expenses are more than the budget. The Difference is calculated as Actual - Budget.
If you add or move categories around, make sure to double-check the calculations, especially the SUM() formulas that calculate the totals and subtotals, to make sure that the right cells are summed.
However, here are some things you should know and keep in mind as you use these templates: Double-Check the Formulas These business budget templates are pretty simple to modify and customize.
