Why Is a Sales Budget Important?
A sales budget is important because it helps the company determine how much revenue it’s expected to make on a product, how much the expenses will be and how many units will need to be produced for the period. Therefore, the sales budget serves as an important planning tool for the company overall. It can also help the company monitor its performance if the company compares actual sales to projected sales.
A company sometimes groups its products into specific categories on the sales budget, and it’s common for the budgets to be prepared either monthly or every 3 months. Marketing professionals have a large influence on the budget as they can predict how sell a product or service will sell, and the production department relies on these figures to make sure enough supplies are on hand to produce the products to be sold.