Overhead Budget

You need to establish a budget for your Overhead or fixed cost to use in setting your selling price. Below is an example of an Overhead budget from my construction business. This is broken down by month. It was prepared using QuickBooks and exported to Excel. We used this budget along and Sales and Marketing budget, and sales projections to establish our selling price.

Double click to enlarge chart

Once you have established the Overhead budget you can compare it each month to actual cost by line item and make revisions as necessary. Notice some item costs such as postage are equally distributed by month over the year. Others vary with when the expenses are expected like General Liability Insurance.   If you track your costs using the same cost items as your budget you will have a historical record to help establish future budgets. The more accurate your budget the more confident you will be in your pricing.