Question

How to do a sales budget? what is sales budget?

Answer 1

Meaning:-

A statement that provides the forecast of the no. Of units and amount of those unit which we are gigoing sale in future time it can be monthly, quarterly,half-yearly and annually.

From where the information about the sale is collected:-

• According to previous years sales figures firms generally tries to exceed their sales to existing customers as well create new consumer this year and increase sales as compared to previous year
• The discussion with people from sales department of the organization. Because they are the people link between the organization and the consumer.
• backlog of orders will be provided with product next year so it will also impact the sale of the product

But other than sales department also raw material supplier, labour of the organization are also a critical part it could be possible that there is huge demand of the product but there is no raw material availability for that product so the estimate sales should be depends of availability of factors of production also.

Example of sales budget

Summary

The sales budget shows the number of unit that firm is going to sale next year and what will be the revanue from that sales.

It is also a base for the production budget and production budget is base for the purchase budget.

I hope my efforts will be fruitful to you...?