Sales budget
In one sentenceAn estimate of the quantities a business expects to sell, their prices and the revenue in the coming period. It is the starting point for all the other budgets.
Simply put
Everything in the budget starts from sales: how much you will buy or produce, how many employees you need, and how much cash will come in. So the sales budget is prepared first.
Base it on your past sales for each item or category, then adjust it with what you know about the market: a season, a promotion, or a new competitor.
Worked example
An auto parts store estimates the sales of two main items for next year.
Oil filters3,000 units × 40 = 120,000 SAR
Batteries500 units × 300 = 150,000 SAR
Total expected sales = 120,000 + 150,000270,000 SAR
Formula: Expected quantity × expected selling price for each item
Don't confuse it with
Financial forecastA forecast is an expectation of what will happen, while the sales budget is a target management approves and holds people accountable for.