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January 2016

Top 5 Best Practices in Sales Budgeting

Sales budget is considered as the backbone of corporate decision-making on pricing changes, inventory planning, and realistic goal setting on profitability. The whole process of the actual itemization of the organization’s sales expectation for a certain period is not an easy task, hence you can find below some best practices in Sales budgeting.

Smaller number is key - 
To easily generate estimates, break sales budget down to smaller number either by product category or geographic location, especially if you have a huge number of products.

Work in periods - Build your sales budget on a monthly or quarterly basis in order for you to you have consistent and timely actionable information.

Collaboration is important - Sales budgets accuracy derives from combining data from various divisions; timing and volumes can be affected from marketing campaigns launches or potential release dates of new products.

Adjust and readjust - To secure accuracy it is best to adjust the sales budget periodically or quarterly with revised estimates. In accordance, you will need to adjust the rest of the budget derived from sales budget.

Do Post-acquisition budgeting - In case of possible acquisitions of other companies, it is best practice to just revise an existing budget plan after the acquisition is final and binding.

For most companies the sales budget is what all other budgets depend on, such as production budget or HR budget. So, if you are still manually doing your sales budget today meet Performance Canvas , a specialized tool for Sales budgeting that can guarantee automated adjustments, accuracy and transparency for your organization.

Book a demo with us today!