Budgeting for Business

Learn how to create and use budgets effectively in company large or small.
4.0 (17 ratings)
Instead of using a simple lifetime average, Udemy calculates a
course's star rating by considering a number of different factors
such as the number of ratings, the age of ratings, and the
likelihood of fraudulent ratings.
52 students enrolled
62% off
Take This Course
  • Lectures 25
  • Length 2.5 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
Wishlisted Wishlist

How taking a course works


Find online courses made by experts from around the world.


Take your courses with you and learn anywhere, anytime.


Learn and practice real-world skills and achieve your goals.

About This Course

Published 1/2016 English

Course Description

The budgeting process can be a mysterious and scary process for employees who are not accounting experts. The list of benefits that a budget can provide, however, is very long! This course aims to overcome the fear and confusion surrounding the budgeting process by explaining the process and its importance in terms that are easy to understand.

Master the Budgeting Process Using Simple Step by Step Examples

  • Recognize the benefits and importance of the budgeting process
  • Create supporting schedules to build a full Income Statement and Balance Sheet
  • Assess the value of the first draft and revise to create a final polished budget
  • Use flexible budgets to assess organizational performance

Learn and Master Budgeting Concepts to Drive Organizational Improvements

There are many benefits to the budgeting process when used properly. You can become a more valuable employee or more successful business owner when you are able to understand and contribute to the budgeting process. Budgeting helps promote teamwork, communication, and continuous improvements. The organization’s goals for the coming year are translated into dollars and cents and shared in a way that helps monitor and improve performance.

However, not everyone is comfortable in the world of accounting. This course is perfect for motivated employees and business owners eager to improve their value and contribute in a more meaningful way to the budgeting process.

Contents and Overview

This course contains 24 lectures, 2 budget templates with completed solutions, five quizzes to track your progress, and 2.5 hours of content. It's designed for any employee, current business owner, business student, or future business owner, regardless of experience level, who wishes to improve their contributions to the organization’s success.

In this course, you will learn the why the budgeting process is important, who is involved, when and where data is collected, and what the process entails.

You'll then dive into the nuts and bolts of the budget, learning where the data comes from, how it all fits together, eventually building a complete budgeted Income Statement and Balance Sheet.

And, finally, you'll learn how to assess organizational performance using a flexible budget.

Upon completion of this course you will be well versed in the basic concepts of budgeting, be comfortable with budgeting calculations, and be able to use the budgeting templates provided to create supporting schedules, a budgeted Income Statement, a budgeted Balance Sheet, and calculate variances using a flexible budget.

What are the requirements?

  • You need basic math skills - nothing complicated!
  • You do not need any prior accounting, budgeting, or finance knowledge.
  • A desire to learn, use your skills to improve your professional performance, and have a little fun along the way!

What am I going to get from this course?

  • Be able to use the budgeting process to increase teamwork, planning, and control where you work or in your own business.
  • Be able to apply the budgeting process to improve organizational performance.
  • Be able to speak confidently on the key concepts of the budgeting process including who, what, when, where, and why do a budget.
  • Know how to create the suporting schedules required to build a budgeted Income Statement and Balance Sheet.
  • Two sets of business data including blank and completed templates to allow you to create a budget right along with the lectures then practice your skills on your own.
  • Be able to Identify ethical issues in the budgeting process.
  • Be able to create complete budgeted Income Statement and Balance Sheet as well as a flexible budget to assess variances between budgeted and actual performance.

Who is the target audience?

  • This course is meant for any employee touched by the budgeting process, accounting or finance students wanting more detailed information in the area of budget, and current or future business owners wanting to create or improve their budgeting process.
  • This course is designed for budgeting in a business setting rather than in personal finances.

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.


Section 1: Section 1: Budgeting Basics

Welcome to Budgeting for Business! After completing this lecture you'll have a solid understanding of what this course offers and if you are a good fit for the course.


Completing this lecture will enable you to articulate the who, what, when, where, and most importantly, why budgeting is important. We'll see who is involved in the budgeting process, when it starts, what tasks are involved, where our information comes from, and why this business process is so important.

As you view this and all the lectures try to see the concepts you are learning in your own work environment so you can more quickly apply and retain what you are learning!


After completing this lecture you will be able to clearly express the benefits of the budgeting process which include teamwork, communication, planning ahead, monitoring progress, and constantly improving business performance.


Completing this lecture will enable you to identify the most appropriate budgeting process for your organization: top down or bottom up. The top down process is quicker and easier but may lack employee acceptance. The bottoms up process takes more time and resources but is often more accurate and well-accepted.


After completing this lecture you will be able to effectively utilize the tools provided in the rest of this course. Be sure to download the lecture resources which include:

1 - Budget Template A - this is your copy of the data file I use in all the lectures so you can work through process with me, ensuring you understand the concepts and calculations. NOTE: Another copy of this template will be provided at the end of the course with all the calculations completed. You can also see all the calculations completed step by step in the lectures.

2 - Budget Template B - this is your copy of a different data file not used in the lectures so you can work through the process and practice on your own to make sure you've mastered the process. The section quizzes will ask you questions based on Budget Template B so you can check your work along the way. NOTE: Another copy of this template will be provided at the end of the course with all the calculations completed.

Be sure to use these templates to practice and master the new concepts you'll learn in this course. If you are a current or hopeful business owner you can even try filling in your own information to create a budget for your own business!

5 questions

This quiz will test what you learned in the first section of the course on budgeting basics.

Section 2: Budgets to Support the Income Statement

Everything we do moving forward will depend on how much activity our business is planning to do in the coming year, so we must start there: sales! After completing this lecture you'll be able to assemble your own sales budget and understand how inaccuracies in the sales budget can have a ripple effect on the rest of the budgeting process.


After completing this lecture you will be able to assemble a production budget which forecasts the levels of production necessary to support the sales budget. Be sure to keep practicing your new skills by following along in your own copy of Budget A and performing the calculations yourself in Budget B.


We would be no where without our employee so we must budget our labor as well! After completing this lecture you will be able to create a direct labor budget based on the production requirements you calculated in the production budget.


Completing this lecture will enable you to assemble a direct materials budget. This budget allows us to set targets for the amount of materials we want on hand and see how much materials we need to purchase each period to support production.


It's a pretty rare organization that can get by without any overhead. Completing this lecture will enable you to assemble an effective overhead budget based on the overhead costs for the year and the number of units to be produced.

Don't forget, as you move through each lecture be sure to look at the examples with a critical eye and see how these calculations and concepts are at work around you in your professional life. Try to assess how you can use what you've just learned and improve your skills at work or in your own business.


After completing this lecture you will be able to use what you have learned in the labor, materials, and overhead budget processes to assemble the Cost of Goods Sold (COGS) section of the budgeted income statement. You are well on your way to completing your first budgeted Income Statement!


After completing this lecture you will be able to assemble the income statement up through the gross profit line. Gross profit is simply sales less cost of goods sold.

10 questions

Use the data from Budget B (Tony's Tire Store) to answer the questions in this quiz.

Section 3: Creating the Income Statement

Now that you've accomplished the income statement to the point of calculating gross profit, you will conquer selling and administrative costs next. In this lecture you will acquire the skills necessary to identify selling and administrative expenses for the business and compile them into the budget.


After completing this lecture you will be able to assemble all the supporting budgets you have worked so hard to create into a complete budgeted income statement. This is an important milestone in the budgeting process and in your learning! Be sure to watch carefully where all the pieces come from then use Budget B to practice assembling the income statement.


In this section you will take a step back and appreciate all the hard work you've put in so far then assess where you go from here. After completing this lecture you will be able to assess the role you play in the budgeting process and how information in one area ripples out to impact other areas.

5 questions

Use the data from Budget B (Tony's Tire Store) to answer the questions in this quiz.

Section 4: The Balance Sheet

In this section we turn our focus away from the income statement and begin focusing on the elements we need in order to build the balance sheet. After completing this lecture you will be able to assemble the schedule of cash receipts which will support the cash budget and ultimately the balance sheet budget.


They say what goes up must come down. In business perhaps it's what comes in must go out. You have already assembled the cash receipts budget, in this lecture you will assemble the cash payments budget. Both the cash receipts and cash payments budgets are crucial in assessing cash flow.


Using the cash receipts and cash payments budgets you created, you will create the cash budget in this lecture. More importantly, after completing this lecture you will have a solid grasp on why the cash budget is so important and what actions are necessary if cash flow is not adequate.


Inventory is another important asset on the balance sheet. After completing this lecture you will be able to use the direct materials and overhead budgets from prior lectures to assemble the inventory budget.


This is another important milestone for you! After completing this lecture you will have assembled the budgeted balance sheet. This is an important financial statement. If you aren't familiar with the balance sheet that's not a problem. The simplest elements of the balance sheet are explained in easy to understand terms so you can use all the skills you have amassed so far to build this important financial statement.

One final reminder to use the templates provided in the "How to Get the Most Out of this Course" lecture. Use Budget A to follow along with me in the lectures, ensuring you are able to replicate what you are learning. Then use Budget B to practice on your own, confirming you are ready to move on.

8 questions

Use the data from Budget B (Tony's Tire Store) to answer the questions in this quiz.

Section 5: Putting it All Together and Using it!

We generally don't land on the perfect budget the first time around. The budget we have just assembled is a great first start though! After completing this lecture you will be able to assess the budget you have just created and know how to begin making changes to hone and polish your final budget.


At this point you have created and finalized the budget, way to go! After completing this lecture you'll be able to apply what you learned in the budget creation process to use the budget effectively. Budgets help the purchasing department know how much of which materials to purchase when. Budgets help human resources to know how many people to hire and train in each period. The list of ways to use a budget is just about endless so you will have a lot of outlets and ways to use the new skills you have acquired.


Though the budgeting process may seem as though it is all about numbers and calculations, there are several ethical issues that we should be aware of. In this lecture you will assess some of the common areas ethical issues may lurk.


In prior lectures you have already learned how valuable the budget is as a management tool. In this lecture you will see how we can compare our actual performance to the original budget and a new tool called the flexible budget. After completing this lecture you will be able to use the budget to create a flexible budget and use the resulting variance data to explain and help improve organizational performance.


Thanks so very much for your time and effort in Budgeting for Business. Your hard work is appreciated! Please be sure to share feedback so we can make this course the best it can possibly be!

As promised in the beginning of the course, solution files for Budget A and Budget B are provided in the lecture materials here. Be sure to use them to check your work!

As you wrap up your work in this course take one last moment to consider all that you have learned and look for these concepts around you at work or in your own business. Consider how you might improve your role in the budgeting process to provide better information or how you might use the budget data you receive in your position. It's a powerful tool if we know how to use it correctly!

Thank you!

Section 5 Quiz
4 questions

Students Who Viewed This Course Also Viewed

  • Loading
  • Loading
  • Loading

Instructor Biography

Hello! My name is Dr. Samantha Duhn. I prefer Samantha over Sam, though I still smile when people ask me if I like green eggs and ham!

I have worked in the food manufacturing industry, automotive industry, and the aerospace industry. I have also spent some of my time outside the office as an assistant instructor for the Dale Carnegie classes, have been a range aide for motorcycle safety classes, and was a train-the-trainer for the Lou Tice Institute of Excellent philosophies.

Never satisfied with status quo I finished my B.A. in Accounting at Buena Vista University, then my MBA and PhD at Northcentral University with specializations in human resources, management, and finance.

Much like my motivation to learn I am also motivated to move and be active. I am an ultra distance runner, scuba diver, triathlete, backpacker, camper, traveler, motorcycle rider, novice gardener, and proud parent of a beautiful 4 year old daughter.

I am one of the fortunate few who love what they do! I spend my days helping students find the joy in learning. This is why I founded Elemental Scholar, an organization dedicated to bringing quality courses to anyone seeking to continue their learning.

I enjoy working with students and working on my ‘bucket list’. Someday I hope to add IronMan to my resume along with a degree in psychology and a few snapshots of me on my bicycle somewhere in Italy. The day is short and the list is long, enjoy!

Ready to start learning?
Take This Course