Family with budget

Switzerland
Income & Expense Accounting
Private

Income and expenses accounting with income and expenses planning.

Manage your household accounts with Banana Accounting and reduce your family expenses to save more money with your family budget.

To achieve more easily this goal you need a budget to check your household accounts! Predicting financial income and expenses has become important not only for businesses, but also for families and individuals. For this reason Banana Accounting has provided in its templates the "Budget" function, in which you can create your own one. But now you're wondering, how to make a family budget? No problem, following our guide step by step, you will be able to create your budget and start to manage your household accounts in the best way.

 

Start by creating a new file

If you haven't done it yet, download and install the free version of Banana Accounting 9.

You have two options to start creating your own file:

  • Download the Family Budget and Household Accounts (Income & Expense) template from our website
  • Open the template directly from Banana Accounting
    • Menu FileNew in order to search for the Family Budget and Household accounts template (Income & Expense)
    • Select the Universal-English Region
    • Verify that there is a check mark in the box Include universal templates
    • Select Private Category
    • Select the Income & Expense accounting Type
    • In the list on the right select the template and click on Create

 

Regardless of the way used to create the file, once opened, enter your activity data into the File Properties and save the file.

 

Adapt accounts and categories tables

Before creating your own budget, you need to quickly adapt your account and categories to your specific needs.

Accounts table

The Accounts table shows the accounts for managing bank and postal current accounts, cash, receivables and payables.

You can customize them by changing the description (and/or the account number), adding the ones you need or deleting the ones you don't need. Then, for each account, insert your current availability in the Opening column.

 

Categories table

This table includes the income and expense categories. There are also the Cost centers, which are used to know in detail the amount of expenses and income for each member of the family.

The categories are divided according to the same structure explained in detail in the Create your Budget paragraph:

  • Revenue
  • Fixed expenses
  • Variable expenses

You can also edit categories and cost centers by adding new items, changing the category number, changing the order and deleting lines that you don't need.

 

Create your budget

Now it's time to create your own budget: go to the Budget table. This table will include all the income and expenses that you will have to incur during the year.

To create the budget correctly, follow three simple steps:

  • Insert your income
  • Insert fixed expenses
  • Insert variable or extra expenses

For more technical information, please consult the documentation page of the Budget Table.

Insert income

Start by thinking about all the fixed income you have and the amount of it. Salary is the main income, but there may also be others depending on your work and your assets.

Revenue may include:

  • Salary
  • Real estate rents
  • Maintenance cheques
  • Bank and postal interests

Tip: Only rely on assured income.

 

Insert fixed expenses

Now it’s time to think about all the fixed costs. This type of expenses includes both annual and monthly expenses and you can estimate them based on those of the previous year. For expenses that vary slightly from period to period you can make an average estimate, rounding up the amount to be more cautious. It’s better to make an inaccurate forecast at the beginning of the year, and then adjust it, than to have surprises of higher expenses.

For example, to enter the monthly rent expense you must enter the start date (usually the beginning of the year), the repetition (how often this expense is repeated), the description, the amount in the expenses column and the expense category.

In the template you can already find examples of fixed expenses that you can easily modify and eliminate, according to your needs. You can still insert new items.

Fixed costs may include:

  • Rent or mortgage for the house
  • Taxes and duties
  • Insurance
  • Medical expenses (health insurance)
  • Television fee
  • Electricity, water and gas
  • Foodstuffs
  • Transport (fuel, season ticket for public transport)
  • Personal care costs (personal hygiene, household hygiene)
  • Education costs (university fees, school books, newspaper subscription)

 

Insert variable or extra expenses

Now do the same thing, but thinking about all those expenses not of basic necessity (we can call them extra expenses), which are usually variable during the year.

Variable expenses may include:

  • Holidays
  • Meals and drinks in restaurants and bars
  • Cinema, theatre and shows
  • Shopping
  • Various gifts
  • House breakdowns
  • Car repairs
  • Hobbies
  • Cigarettes

Also in this case you have to make a presumed estimate of all the extra expenses, thinking about how many times you incur each single expense and of course its amount.

Tips:

  • For each extra expense, set a monthly ceiling, which is a maximum amount that you should not exceed monthly. Respecting it will allow you to keep your spending under control.
  • Unforeseen expenses, such as car repairs and house breakdowns, estimate them annually, divide them by 12 and report this figure monthly

 

Control your budgeted expenditure and revenue

To complete your budget there is only one last step to take, which is of great importance to begin to take into account the actual expenses and revenue: you must compare budgeted revenue and budgeted expenditure.

To do the check is very easy: just go to Account1Enhanced statement with groups, and from the list that appears choose the report you want (usually the most useful in this case is Yearly budget). Press OK to view the report.

Surely the goal you want to achieve is to save as much as possible. Check the Result item and make sure that your income is greater than your expenses, in this case it means that you are generating savings, and that's good!

On the other hand, if your expenses are greater than your income, it means that you're mismanaging your money or you've made a mistake in your budget. Check if you have overestimated some expenses and change it correctly or choose one or more extra expenses that you will commit to reduce during the year.

 

It’s time to actually keep your accounts!

With the budget under control, including the "savings goal", you can start register the various real transactions of money and compare them from time to time with the expected values.

Register the transactions of the day

Daily transactions must be inserted in the Transactions table. To make a registration you must enter the date, the description, the amount in or out and the respective account and category. If for each item of expenditure you enter in the column CC1 the code of the cost center (family member), you will also update the amount of expenditure for each family member.

To help you understand how to introduce transactions, there are also some examples in the table that you can delete and edit.

 

Compare and repeat for a new goal

During the year you can compare at any time your current situation with the budget, to understand if and where you are spending more, in order to adapt your buying habits and save more! At the end of the year you can make the final comparison between the actual report and the budget to see if you have achieved the desired savings.

Create the control report from the menu Account1Enhanced statement with groupsYearly report compared to budget.

You are arrived at the end of the year, so you will now have to re-plan the next one with a new budget, exactly as you have done up to now. A new saving goal awaits you!

Template Preview

Family Smith John

Basic Currency: EUR

Income & Expense accounting

Accounts
Group Account Description Gr
    ESTATE  
    Assets  
  100 Cash 1
  100.1 Cash John 1
  102 Post office current account 1
  104 Bank 1 1
  106 Credits 1
  108 Furniture 1
  110 Withholding tax 1
  112 Real estate 1
1   Total Assets NE
       
    Liabilities  
  200 Current liabilities short term 2
  201.1 Credit card John 2
  201.2 Credit card Susan 2
  210 Long term loan 2
2   TOTAL LIABILITIES NE
       
NE   NET ESTATE  
Categories
Group Category Description Gr
    OPERATING RESULT  
       
    INCOME 4
400   Salaries 4
  400 Salaries (General) 400
  400.1 Salary John 400
  400.2 Salary Susan 400
       
410   Other income 4
  410 Other income (General) 410
  410.1 Interest income on bank accounts 410
  410.2 Reinbursement 410
  410.3 Various 410
4   TOTAL INCOME 3-4
       
    EXPENSES 3
300   Food & Dining 3
  300 Food & Dining (General) 300
  300.1 Food purchases 300
  300.2 Wine and drinks 300
  300.3 Restaurant 300
  300.4 Groceries 300
       
302   Auto & Transport 3
  302 Auto & Transport (General) 302
  302.1 Gas & Fuel 302
  302.2 Auto Insurance 302
  302.3 Parking 302
  302.4 Registration 302
  302.5 Public Transportation 302
  302.6 Car loan 302
  302.7 Car Wash 302
  302.8 Service & Parts 302
  302.9 Toll 302
       
304   Bills & Utilities 3
  304 Bills & Utilities (General) 304
  304.2 Home phone 304
  304.3 Internet 304
  304.4 Mobile phone 304
  304.5 Television 304
  304.6 Water 304
  304.7 Sewer 304
  304.8 Electricity 304
  304.9 Gas 304
       
306   Education & Amusement 3
  306 Education & Amusement (General) 306
  306.1 Books & Supplies 306
  306.2 Student loan 306
  306.3 Entertainment 306
  306.4 Amusement 306
  306.5 Arts 306
  306.6 Music 306
  306.7 Movies & DVDs 306
  306.8 Tuition 306
  306.9 Newspaper & Magazines 306
  306.10 Hobbies 306
  306.11 Presents 306
       
308   Travel & Vacation 3
  308 Travel & Vacation (General) 308
  308.1 Hotel 308
  308.2 Vacation 308
  308.3 Travel 308
  308.4 Air Travel 308
  308.5 Rental Car & Taxi 308
       
310   Fees & Charges 3
  310 Fees & Charges (General) 310
  310.1 ATM Fee 310
  310.2 Bank fee 310
  310.3 Late fee 310
  310.4 Service fee 310
  310.5 Trade commissions 310
       
312   Financial 3
  312 Financial (General) 312
  312.1 Financial Advisor 312
  312.2 Life Insurance 312
       
314   Tax 3
  314 Tax (General) 314
  314.1 Real estate and personal property taxes 314
       
316   Health & Fitness 3
  316 Health & Fitness (General) 316
  316.0 Health insurance 316
  316.1 Medical expenses remboursable 316
  316.2 Medical expenses not remboursable 316
  316.3 Medicare reimboursement 316
  316.4 Doctor 316
  316.5 Pharmacy 316
  316.6 Dentist 316
  316.7 Eyecare 316
  316.8 Gym 316
  316.9 Sports 316
  316.10 Sporting Goods 316
       
318   Home 3
  318 Home (General) 318
  318.1 Furnishings 318
  318.2 HOA Dues 318
  318.3 Maintenance and home improvement 318
  318.4 Home Insurance 318
  318.5 Home Services 318
  318.6 Home Supplies 318
  318.7 Lawn & Garden 318
       
320   Mortgage & Rent 3
  320 Mortgage & Rent (General) 320
  320.1 Mortgage Interest 320
  320.2 Interest Expense 320
  320.3 Room and board 320
       
322   Children 3
  322 Children (General) 322
  322.1 Allowance 322
  322.2 Baby supplies 322
  322.3 Babysitter & Daycare 322
  322.4 Kids Activities 322
  322.5 Toys 322
       
324   Personal expenses 3
  324 Personal expenses (General) 324
  324.1 Hair 324
  324.2 Laundry 324
  324.3 Spa & massage 324
       
326   Pet Food & Supplies 3
  326 Pet Food & Supplies (General) 326
  326.1 Pet Grooming 326
  326.2 Veterinarian bills 326
  326.3 Shopping 326
       
328   Electronics & Software 3
  328 Electronics & Software (General) 328
  328.1 Computers 328
  328.2 Software 328
       
3   TOTAL EXPENSES 3-4
       
3-4   TOTAL OPERATING RESULT  
       
       
    Family members  
  :JO John FAM
  :SU Susan FAM
  :MA Mark FAM
  :FR Francis FAM
FAM   Total family members  
       

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