Budgeting 101 - Factors to consider while planning different P&L line items

Revenue Planning
Define revenue and its role in generating income.
Factors to consider when forecasting revenue:
Historical sales data
Market trends
Industry benchmarks
Pricing strategy
Sales and marketing efforts
Capital Expenses
Define capital expenses and their impact on long-term financial health.
Factors to consider when planning for capital expenses:
Business needs and growth plans (e.g., new equipment, facility upgrades)
Useful life of the asset
Budgetary constraints
Financing options (loans, leasing)
Operating Expenses
Define operating expenses and their role in day-to-day operations.
Factors to consider when planning for operating expenses:
Types of operating expenses (rent, utilities, marketing, supplies)
Cost-saving strategies
Industry benchmarks
Potential for fluctuation
Payroll Expenses
Define payroll expenses and their significance.
Factors to consider when planning for payroll expenses:
Number of employees and their salaries/wages
Benefits packages
Payroll taxes
Employee turnover
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