The Small Business Specialists
Phone: 13 12 49
The expenses forecast is an estimate of your ongoing operating expenses (overheads, outgoings, fixed costs) for the year. It answers the question of how much it will cost to run your business. The selling price of your products or services must include an amount to recover these expenses.
The expenses forecast will include the list of expenses developed for your profit and loss statement. Some typical business expenses include:
If you are already in business, use the accounting records for expenses from previous years as a guide and make adjustments to reflect increases in price or changes to your business strategy. For example, you might be planning for growth in the next year so include additional costs for extra employees or more plant and equipment.
If you are starting a new business and don't have a trading history, base your expenses forecast on research and benchmarks of similar businesses. You can obtain some of your estimates simply by calling a supplier and asking for a quote. For others, you will have to make a management decision about how much you will need to spend on that category.
Download the Business Tool: Expenses forecast spreadsheet to complate your expenses forecast