The expense budget is part of a larger document: the treasury budget , with which we can know the money that the company has invested or spent.
By payment is meant the outflow of liquid money in the company and that they can have different destinations: they can be payments to suppliers, licenses, material, wages …
When preparing the payment budget, it is necessary to take into account the payment policy of our companies, since some companies pay at the moment while others do it at 30, 60 or even 90 days. These deadlines must be reflected in the payment budget.
Considerations when making a payment budget
In order for a payment budget to adjust as closely as possible to reality, it is necessary to take into account a number of aspects:
- It is necessary to unify criteria. For this reason, it is important that everyone uses the same criteria when preparing the payments section.
- It is important to take into account the date on which the money will actually be available inorder to meet the expenses and payments that the company has.
If you want to see what a payment budget looks like (or a treasury budget), then you can consult a model that you can download and customize according to the needs of your business, or you can also consult other company budgets .
What is included in a spending budget?
This document includes two types of payments: ordinary ones, which are those necessary to face the normal operation of the company. But on the other hand it also collects (and foresees) other possible payments known as extraordinary expenses that may arise
The budget or forecast of expenses must include the most frequent ordinary payments, which are:
- Payment of purchases from suppliers.
- Payment of wages and salaries and contributions to Social Security.
- Supply payments.
- Advertising, marketing and promotion.
- VAT settlements with the Treasury.
If you want to see what a payment budget looks like (or a treasury budget), then you can consult a model that you can download and customize according to the needs of your business, or you can also consult other company budgets .
