Investment budget
- KVK Editors
- Step-by-step plan
- 1 April 2019
- Edited 19 November 2024
- 1 min
- Managing and growing
- Finance
An investment budget provides insight into which business assets you will need in the coming years. And what expenses are involved. You look 1 to 3 years ahead. This can help you plan and manage your finances. An investment budget is part of your financial plan.
Making an investment budget in 3 steps
Your investment budget gives an overview of long-term and short-term business assets. Company assets in your financial administration are referred to as assets. There are fixed and current assets.
Are you an entrepreneur for VAT purposes? Then you include all amounts exclusive of VAT in your investment budget. The VAT that you pay to suppliers is included as voorfinanciering btw (pre-financing of VAT). You can deduct this as withholding tax on your VAT return. Are you not an entrepreneur for VAT purposes? Then you include all amounts including VAT.
1. Fixed Assets
Determine what fixed assets you have. Fixed assets are assets that have been in your company for more than a year. For example, your computer, inventory, company car, deposits, or goodwill paid in the event of an acquisition.Â
2. Current Assets
List your current assets in your investment budget. Current assets are assets that remain in your business for less than a year. This includes startup and opening costs, outstanding customer accounts, stocks, and VAT pre-financing. Startup and opening costs are one-off costs that you incur before you make any turnover. Think of costs for market research, notary costs, consultancy costs, and costs for having your website built.Â
Recurring costs such as promotion costs do not fall under startup and opening costs and are therefore not included in your investment budget. You state these costs in your operating budget. 'VAT pre-financing' is the VAT that you have paid on your investments. Also take into account unforeseen costs.
3. Ask for quotations
Support large investments with quotations. Especially if you are looking for external financiers. Request quotes from 2 to 3 suppliers to make a choice.
Example investment budget
Fixed assets | Amount in euros |
| Machinery, equipment, tools | 8,000 |
| Computer equipment | 5,000 |
| Company car | 10,000 |
| Inventory (desks, cabinets) | 5,000 |
TOTAL fixed assets | 28,000 |
Current assets | Â |
| Startup and opening costs | 5,000 |
| Stock | 5,000 |
| VAT pre-financing | 6,000 |
| Cash | 3,000 |
TOTAL Current Assets | 19,000 |
TOTAL INVESTMENTS | 47,000 |
