Methods and Preparation of Sales Budget

Sales Budget

Introduction

A budget is essential for every business. Without a proper budget, the companies will not be able to track the business process and measure its performance. To succeed in a particular business, you should be able to create the sales budget. A sales budget is a financial planning process where the different methods can be applied for allocating different resources to achieve the target of the forecasted sales.

Basic Concept

The sales budget can project the number of units of sales and also the estimated earnings from them. It is the budget which includes all the items involved in the sales expectations of the company both in the monetary terms and in units. If the company possesses large number of products, it generally accumulates the expected sales from smaller product categories or geographical regions. Otherwise, it will become very complicated to calculate the sales budget.

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