Like the other budgets that you can prepare in a company, the sales budget is a document that helps to know the profitability of a company and to know the estimated sales volume. That is, it gives estimates of sales levels , (and therefore income).
Many companies base their business decisions based on the data that comes out in the sales budget, in addition to being a document that directly influences the level of production. That is, if the company estimates that its sales will be high as reflected in this budget , it must increase production if it wants to meet demand.
The sales budget is a small section of a major element within any company: the financial plan. Although the truth is that at other times it can also be part of the business plan . What can not be doubted is that a good sales budget can help the company achieve its objectives and achieve benefits.
Features of a sales quote
Any sales budget has the following basic characteristics:
- This budget must include a list of all the products or services that the company markets.
- The planned sales must be valued in quantity (number of units and economic value)
- The sales budget must include a sales forecast for the sector and the company.
In order to prepare a sales budget as close to reality as possible, it is important to know the company’s participation in the market. To prepare it, it takes time, effort and a broad knowledge of the market.