Sample Business Budget Template to Estimate Income and Expenses
Here is a worksheet you can use to set up a basic business budget. Depending on your particular type of business, you may have to include different types of income or expenses, but this worksheet should give you the general idea of the types of items you should include in your business budget.
Basic Business Budget Worksheet
How to Use Your Business Budget
Ideally, you should update your budget monthly, using your expenses and income for the prior month as your guide, and working with your senior staff. That way, you can tweak your budget as you go.
This monthly business budget review may indicate where efforts have been successful. For example, if you switch health insurance carriers to obtain lower-cost coverage, you can see how that change affects your bottom line month over month (and year over year, as well).
A monthly business budget review can help you spot potential problems, as well. For example, if you re a retail business, you may realize you need to ramp up your advertising spending more in the fall in order to take advantage of the holiday shopping season. Or if you ve made changes that could have tax implications, you may need to bump your accounting spending.
Why Write a Business Budget at All?
If your business is small, you may wonder why you need a budget — after all, you most likely have a pretty good idea of your monthly cash flow and expenses.
This may be even more true if your business is well-established, with a cash flow pattern that s quite similar year over year.
However, even if this is the case for your business, you still should consider at least drafting a basic budget, like the one on this worksheet. Even the best-established business can run into problems with supply chain, or face a sudden, unexpected expense like a substantial rent increase.
Having a budget in place — even if it s a rudimentary one that you update only once per year — can help you plan for those eventualities and ride them out when they happen. It also might help you see where you could shave costs to increase your profits.