Main aspects of a budget
The first thing to note is that your budget should focus on the costs of the goods or services that your business provides and the proposal in general. That is, clearly account for all your client’s needs. The following are a few steps to improve your budget.
- Technical details are incredibly relevant, such as what you are going to deliver, functions that your work will cover, the elements that your service will consist of, etc.
- The form of delivery is another essential aspect, as it is necessary to specify how the service will be delivered to the client. This ensures that they know what they will receive and how much they can demand.
- You must clearly explain what you will receive before starting your work since compensation is relevant to the type of service you provide.
- It is imperative that you outline the duration of the service provided and, if possible, create a schedule specifying specific deadlines.
- The price of each stage of the service must be clearly stated so that the client knows what you charge for each service individually, as well as for overall management.
- Do not forget to put an effective date on the budget.
- It is essential that the budget be clear and detailed and that you address the client as a professional.
- It is advisable to read it aloud and even have a trusted friend or colleague look it over and give their opinion.
A budget must be clear, concise, and detailed. There are several techniques available to create the perfect resume; however, whichever option you choose, it is most advisable to state all charges that constitute your service clearly. This way, your client knows exactly what they are paying for.
The following are a series of the essential elements that every budget should include:
Data of the company/ service provider:
In this section, you should state the relevant details of the company or professional providing the service, such as the name or business name, the NIF or CIF, the tax address, and other contact information.
The budget should reflect the name of the client (either private or company), as well as your CIF or ID and address.
The concept expands on the elements that make up the products and or services listed in the budget.
It should include the different offerings, working hours, materials used, and other associated costs. These ancillary costs may include contracting other third-party services, licenses, and supplies.
In this section, you must also include the number of units of each element that makes up the concept, along with their costs and the total cost of each group of units of the same nature.
The amount must be broken down, indicating the tax base or the sum of the concepts without VAT, the percentage of VAT that is applied, and the total amount of the budget. This total amount results from the sum of the tax base plus VAT.
It is vital to consider the payment method of each budget. Typically, advances are not usually established when the total cost of services is low or does not require the prior acquisition of material. But in the case of more expensive services or ones that involve a significant acquisition of materials or contracting services from third parties, it is advisable to agree on advancement in the form of a percentage of the total amount.
In this section, you can also specify the means of payment, either by bank transfer or deposit or in cash.
Other elements of the budget:
In addition to the mandatory elements described above, several techniques can help make your budget more comprehensive and ensure greater confidence from your clients.
Including the deadline for delivering a finished project, or the intermediate periods of the different stages, is an essential resource to add value to your service. Keep in mind, when a budget becomes legally valid, it is important to comply with these deadlines and plan for them in advance.
Guarantees and technical support:
There are certain services or projects that may need to be endowed with certain guarantees (especially when it comes to long-term services) or technical support, which does not have to be included in the amount of the service itself and must be budgeted appropriately.
A good technique to make your budget more attractive is offering this technical support free of charge for a specific time.
Include the legal conditions you deem necessary to avoid misunderstandings or abuses by any of the parties. In this way, you can prevent any misinterpretations of what is stipulated in the document, saving time and money.
Sometimes it will be necessary to present the budget in a different format, such as a preform invoice or a proposal for a commercial contract. This last modality is usually relevant for commercial agents, trainers, or programmers who develop their work continuously over time.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.