A budget is essential for any business to stay within the fund limits of the company. A budget is created to not only keep track of a business' money, investments and expenses, but also to help the company executives find places where money could be saved. This is done by excessive analysis and rewriting, but a realistic picture is created in the end. Writing a budget report to keep track of a company's finances is the first step in the right direction for a prosperous business.

Create a list of the items that are part of the budget. Only include items that fall within the budget period. This can be a weekly, monthly or annual budget period.

Divide the list into two columns. The first column should be non-variable expenses, including rent and telephone bills, for example. The other column should be variable expenses that charge each month, such as business trips and corporate dinners.

Add the dollar amounts for each item on the budget list created in Step 1.

Add all of the expenses together in the budget list. Subtract this amount from the overall budget amount for the business. For example, if a company has X amount of spending money each month, subtract the monthly expenses from X.

Determine whether the amount is positive or negative. If the amount is negative, the monthly budget limit has been crossed. If the amount is positive, then the budget limit was held.

Write a short description of each item in both lists. Do not include descriptions on obvious items, such as rent or telephone bills, unless there has been a raise in rent or the telephone bill is extremely high during this month. Provide reasons why each expense was relevant to the business at the given time. For example, if a large lump sum was paid to a consultant for some freelance work, make a note of the hire and reasoning.

Highlight items that stand out due to their high or low monetary amount with a different color. Write a note explaining the reasons why the amounts are notably high or low.

Write a strategy section explaining how large expenses or purchases can be cut down if the budget amount was in the red for the budget period. Also include information about the company can save in various areas to have a better budget for the next budget period.

Write a brief summary of the chosen period's budget. Highlight the good and the bad of the budget, including a brief discussion of how the budget can get back on track with a few adjustments. Ensure to justify the spending for the period and how each purchase or investment has benefited the company. If some purchases did not, mention which ones and provide a reason why. Place this summary at the beginning of the report.

Create a title page and a table of contents. Insert these two into the front of the report, followed by the summary.