Streamline sales budget planning for government

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okay so let's take a few minutes to talk about the sales budget this is the first budget that you prepare it's the one that's going to drive most of the other budgets so we need to do a good job in predicting our budgeted sales of we're forecasting sales of what we expect that they will be now every other budget is a mention is going to depend on this so usually what the way it's calculated is by taking the number of unit sales times the sales price per unit to get total sales revenue now when two managers are trying to set their sales forecast they're going to typically look back and let's see what our goals were or what our actual results were say a year ago or last month and move and use that as a foundation our basis for going forward some other things that we might actually look at are the general economic conditions or are we in a market right now that's really strong are we in a recession how might that impact our numbers from last month or last year at the same time are there industry trends is the industry trending upward or downward perhaps anticipated advertising so if we've done some new advertising or new sort of promotion and we're expecting a bump in sales that's something we should take into consideration price changes if we've made a change in price that can have an impact technological developments whether is good to know maybe it was cold and rainy this time last year now it's going to be sunny or vice versa those are all things that a manager will want to take into account let's do a quick review of how we would calculate a sales budget it's pretty straight forward so in this example oil companies preparing budgets for the quarter and they are giving us the budgeted sales for the next five months selling price per unit is ten dollars all we need to do is plug in the budgeted or forecasted sales for each month multiply a times C selling price per unit to get total budgeted sales that's all we need to do for a sales budget