What is an operating budget?

An operating budget is a detailed projection of what a company expects its revenue and expenses will be over a period of time. Companies usually formulate an operating budget near the end of the year to show expected activity during the following year.

How to use an operating budget template

Maintaining a healthy business requires careful financial planning and budgeting. Companies use a master budget to manage their cash and other assets, and to estimate their future sales and expenses. Master budgets are made up of two parts that work together: financial budgets and operating budgets.

Operating budgets, which are detailed plans that estimate how much income a company expects to make and what it thinks its expenses will be in the short-term, typically within a year. Companies normally use separate operating budgets to create plans for each area of their business.

Download this template for additional instructions.

The content and templates are provided for informational purposes only and are provided as-is and as available basis. You should not construe any such information or other material as legal, tax, investment, financial, or other advice.
All content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. For questions or advice regarding your business’s specific circumstances, please consult your business financial advisor. Nothing in the site constitutes professional and/or financial advice, nor does any information on the site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. Divvy is not a fiduciary by virtue of any person’s use of or access to the site or the templates provided herein. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the site before using the templates provided or making any decisions based on such information or other content. You agree not to hold Divvy, its affiliates or any third party service provider liable for any possible claim for damages arising from your use of the templates provided herein or any decision you make based on information or other content made available to you through the site.