A budget is the anticipated calculation of the cost that a specific project, work, service or product will have.

If you provide services or your products don’t have a fixed price, the budget is an especially useful and basic document for your work. It’s the tool you need to specify the services/products you offer to your client and their cost.

Additionally, on many occasions, the budget is your business card, because it’s the first thing your client sees.

The appearance of a budget can help the client decide on your offer. Create an account at FacturaDirecta and enjoy our professional budget templates.

Making a good budget is not easy, you must find the balance between being competitive and not devaluing your work to be able to live from it. For this you must take into account the expenses, working hours, resources you will need and the margin you intend to achieve.

Note: we recommend reading our guide “How to get a budget that sells” with 7 tricks to make your budgets much more effective.

What should a budget include?

Your budget should be as clear, concise and detailed as you can. This way you can avoid misunderstandings and your client knows exactly what they are going to pay.

These are the elements that any budget should include:

• Client data: Name, Tax ID or National ID and address.
• Your data as service provider: Name or business name, Tax ID, tax address and contact data (phone, email, website,…)
• Concepts: this is the detail of products/services that the budget includes: working hours, materials, associated costs, hiring other third-party services if any, licenses, supplies…
• Units and price per unit: you must specify the number of units of each concept, the unit cost of each unit (hourly rate for example) and the total cost of each concept.
• Total Price: You must break down the amount into tax base, that is, the sum of concepts without taxes, the percentage of taxes that apply and the total amount of the budget, which results from the sum of the tax base plus taxes.

I hope this information is useful to you. Remember that with FacturaDirecta you can convert a budget to invoice in just one click, saving time to dedicate to more important things.

We hope this information is very useful to you.