Do you know what the budget proposal is? We will tell you about it. We can say that it is a highly detailed sales pitch for a project that is done in the business.
These budget proposals are used in fields like business, academic, non-profit organizations and more. We can also say that budget proposal templates are formal documents that are needed to provide a financial budget for a business.
The accounting department needs a budgetary proposal template to know how much more is needed to proceed with the business.
The project budget template consists of information like projects, expenses and their causes, digital signatures and more. It shows information about the employee, materials, supplies, equipment, workshops and many more.
What are the Components of a Budget Proposal Template?
There are four parts to the budget proposal template. We can simply download a sample budget or try to make one.
To create a budget proposal the below parts need to be kept in mind. These points will help to create the right budget format.
Purpose or Goal
Facilities and Administration Cost
Built A Gantt Chart
Put In Person-days Per Company
Estimate the Labour Charge
Add Other Costs Like Travel and Subcontracting
Put Everything Together
The budget proposal template should include an objective in the first part. It should consist of not more than two sentences defining the goal of the budget.
Next is the direct cost. Here we need to describe the cost of the production, marketing and distribution. This means a budget proposal template needs funding. Check out budget examples on the internet before creating one to know exactly how it should be.
Many of the grants do not include the payment of the administrative cost and the cost of the facilities. Try to separate these costs in the budget proposal as it will help the company to seek sponsorships in the future.
Costs like facilities, support staff, utilities, legal expenses and others are included in it.
This part comes where the budget format has to be concluded. It should consist of the details like the revenue, sales, donations and others. We need to make sure to add the completion of assets and others. This can help to provide future revenues in the business.
How to Write a Budget Proposal?
Writing a budget proposal is an excellent idea because it allows the individual to understand the total scope of the project. We understand that you would be nervous about it trying the first time.
Surely we are here to help. To write the budget proposal, we need to remember the points mentioned below. It will help to include the necessary points and information in the budget format.
The first thing to do is to build a Gantt Chart. The complete overview of the project becomes simple here. Making a Gantt chart allows you to clearly tell the assessor what we are thinking about the project.
We can provide him with a clear picture of what we are going to do with it. Check budget examples to know how to start.
This is the most important part of the budget proposal template. Here we have to estimate the total cost of the project. To create this part we need to know the amount of work that is needed to fulfil every part of the project's activities and estimate the workforce as well.
By workforce here means the developers, researchers, marketers and more. The pay grade and pace of work vary from one to another. It means we will have to set their person-days accordingly. To how it is done simply get a sample budget.
The labour charge has to be estimated in this step. To understand the proposed budget, know the amount of the person-days and the timing of their work.
It will help to know the exact cost of labour. This task is quite easy. All we need to do is multiply their daily rate by the number of days they will be working with the company.
Here, two more categories need to be dealt with. The first is the travel cost and the second is subcontracting. These two categories are needed to be included.
In case, if you think some more columns need to be added in the budget format then label them as "Others".
In the subcontracting section, write down whom you are thinking of hiring, the work packages and more.
Whereas in the travel cost section, the number of people who will be travelling with the return tickets to the destination needs to be calculated. The daily travelling costs need to be added as well.
When all the above points are done, now it is time to put everything together to make it look clear. It will help to create an effective budget proposal.
How to Create a Budget Proposal in Excel?
If running out of time and want to create a budget proposal as quickly as possible then choose an Excel sheet to create it. To create a budget proposal template in excel then follow the tips given below.
- First, open a new blank workbook in the excel.
- Now the income tab has to be created. It will help to eliminate errors and keep a track of your money.
- To do this, know the basics of Excel sheets. Use the Autosum feature and apply the formulas to get the totals. This step can be repeated for the other columns as well.
- Now add the expenses to the excel sheet.
- In case if we need more sections then add them and label them as funds, savings or others.
- Now come up with the final balance. Keep all the data in a single sheet. Just label the first one as total spending and the second one as the final balance to know the totals.
The excel budget proposal can be made easily by following the tips mentioned above. Besides that, we can simply download sample budget planning.
When downloading a budget sample make sure all the details are included properly in it. Your submission dates, project title, business name, and signatures should be included. Cross check to make sure that no mistakes have been made.
Budget Proposal FAQs
What is a Budget Request?
A budget request is made before the budget proposal template. This is needed when you are seeking funds for your new business project.
What is the Purpose of a Budget Proposal?
A proposed budget helps the providers and investors to know how much money is going to be spent on a project.
What Information should Be Included in a Budget Proposal?
A sample budget or a budget proposal should consist of all the costs, facilities, administrative costs and others.