Cost plan, revenue plan and financial plan

Cost plan, revenue plan and financial plan(budget template)

The use of machinery and equipment in the production, the employees in production, marketing and sales, external service for advertising - all

related activities result in costs. These are collected in a cost plan. Costs, which lead to payouts, and investment expenditures are included

in the financial plan.

At the same time in the budget revenues  and payments are described as they are derived from the sales plan. The difference between

revenue and costs or deposits and withdrawals result in the need for funds. The needs to be covered by an appropriate budget or external capital

inflows.

Thus, the cost and the financial plan are the basis for the budget. It describes what funds and other resources in the areas where, to be used

for which investments or for what projects.

FOR financial planning a baker
The budget , he summarizes what cash flows are to be expected. Finally, it checks whether its available funds sufficient

for it or whether he has to raise money . When all questions have been clarified, he summarizes the result in his budget plan.

Budgets apply for a defined period

In all plans, respective actions are presented and supplemented by the related numbers as numbers or amounts of money. In addition, all data

have a temporal reference. It is shown:

When will the planned actions carried out?
When it comes to deposits or withdrawals?
In what period which costs are incurred - and thus offset the budget?
The relevant information is summarized at a defined time period. Thus, the respective plans are for one year, a quarter or a month. What time

period is reasonable depends on the circumstances. Some companies create a marketing plan only once a year. Your financial plan they maintain

weekly. Each plan must be clear on what time period it relates. This also applies to the budget.

Budgets apply for a defined organizational unit(budget)

The individual plans have a different meaning in each case for the different areas of a company. The production is not interested in the

marketing plan. You just have to know when to produce and deliver that product in what quantity. Marketing is not interested in the cost of the

IT department. In order to assign the plans the respective divisions or departments, these must be separated. It must the organizational units
are included, for which a budget is to apply - the budget range.

EXAMPLE budgets for different marketing areas
The marketing of a company is divided among the different product groups. For each group, a separate marketing plan is created. The company must

specify whether it summarizes the costs of marketing and created a common, higher-level cost plan with appropriate budget or whether it

identifies the budget for each product group separately.