• Home
  • Blog
    • Business Partner Magazine Archive
  • Resources
  • About Us
    • Cookie Policy
    • Disclosure Policy
    • Privacy Policy
    • Terms of Website Use
  • Contacts

Business Partner Magazine

Tips and advice for entrepreneurs, start-ups and SMEs

  • News
  • Business Success
  • Marketing
  • Employees
  • Technology
  • Start-up
  • Productivity
  • Communication

Create a Business Budget in 5 Simple Steps

February 17, 2018 by Alex Williams

Click here to get this post in PDF

Too long to read? Enter your email to download this post as a PDF. We will also send you our best business tips every 2 weeks in our newsletter. You can unsubscribe anytime.

Enter your NameEnter your Email Address

No matter what kind of business you’re running, you need money in order to keep moving forward. This means that a formal and structured budgeting process is the foundation of every successful business. And just like with personal finances, coming up with a budget takes a lot of discipline and careful planning. Read on to find out the easiest way you can create a budget.

Figure out your timescale

When it comes to finances, a yearly financial budget is considered to be a default. However, just because most companies out there determine their budget this way, it doesn’t mean you have to do the same. Sometimes, operating on a quarterly or monthly budget can turn out to be a better idea. This is especially the case when running a small business and making long-term plans is more difficult. If you decide to go for a smaller timescale, you’ll be giving your business more chance to adapt to changing circumstances. Still, if you decide to go for a smaller scale, you have to make sure you don’t lose the sight of a bigger picture because of it. Once your business starts growing, determining a yearly budget might be a smart move but even then, you’ll want to break it down into smaller chunks.

Determine your expenses

Keeping track of your company’s expenses is an absolute must. By utilizing the power of cloud accounting you can easily keep an eye on your company`s expenses and pending invoices with tools such as QuickBooks Hosting on a cloud desktop from a reliable desktop as a service provider which will help you to make your company`s accounting effective. This is where it’s important to understand that there are two types of expenses – fixed and variable. Firstly you’ll want to take a closer look at your fixed expenses. These are the expenses your business will have to cover no matter what’s happening within the company. Fixed expenses include things such as staff salary, lease and so on. Luckily, fixed expenses shouldn’t be too difficult to track. Variable expenses are those that depend on your company’s profits, which means they’re reactive and predictive. Postage costs are a great example of this kind of expenses. The more sales you have the more you’ll spend on shipping your products to your customers. Some other examples of variable costs include materials, transaction fees and variable labor.

Determine your income

Once you know how much money you’ll be spending, it’s time to determine your income. Most of your income is going to come from your core business, with sales being the most obvious example. On top of this, there are interests and returns on any investments your company will make in future. Of course, you can’t predict the future and it’s impossible to figure out exactly how much money your business is going to make. And this is where you have to rely on data from the previous periods. When doing this, don’t forget to take into account any fluctuations you expect to see in demand, especially if you’re in a seasonal industry. If you’re just starting out, you still don’t have any income but you need money in order to get your business off the ground. This is where you might want to turn to a company that offers fast business loans.

Account for projects

When creating your company’s budget, you’ll always want to leave some room for undertaking large projects. These are basically variable expenses, but they can take a large chunk out of your budget, and tracking them individually might be a good idea. This means you’ll want to take a closer look at your previous projects like a marketing campaign or an IT equipment overhaul. Once you know how much projects like this cost your company, you’ll know how much money to set aside for similar projects in the future. If you see a rise in income, you’ll probably want to stash even more money for projects like this. This is the case because when profits are high, there’s no better way to invest your money than to finance such projects. Smart project planning is one of the key elements that allow your business to grow.

Review your budget

Creating your budget isn’t one of those things you’ll have to do once. It’s extremely important that you take a look at your budget at the end of each financial period and make adjustments if necessary. Ideally, you’ll be able to apply what you’ve learned during the previous financial period in order to make adjustments that’ll leave your business with more money. This means you might want to review your variable costs and identify ways to reduce them. You can also try to renegotiate some of your fixed expenses. Once you’ve been running your business for a couple of years, you’ll see patterns emerge and you’ll know exactly when to tighten up your budget and when you can spend some extra money.

Follow these 5 steps and you should be able to create your business budget. Don’t panic even in case something goes wrong. Use everything you’ve learned so far to create a better budget for the next financial period and you’ll have nothing to worry about.

YOu may also like Smooth Beginnings: 4 Tips for Lowering Your Expenses When Starting a Brick and Mortar Store

About the Author

My name is Alex Williams, born and raised in beautiful Sydney. I am a journalism graduate, and a rookie blogger trying to find my luck. Blogs are the perfect opportunity for presenting yourself to wider audience, getting the chance to showcase my expertise and receiving recognition. I am a regular contributor at BizzmarkBlog.

Facebook – Twitter

Filed Under: Business Success, Finance Tagged With: Accounting, Budgeting, business success

Trackbacks

  1. Six Financial Metrics Every Business Owner Should Review - Business Partner Magazine says:
    December 20, 2018 at 9:01 am

    […] You may also like: Create a Business Budget in 5 Simple Steps […]

  2. Financial Tips When Launching a Startup - Business Partner Magazine says:
    January 26, 2019 at 12:19 pm

    […] You may also like: Create a Business Budget in 5 Simple Steps […]

  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • Twitter
  • YouTube

Disclosure

We earn commissions if you shop through the links on this page.

Recent Posts

  • Top Trends in Milestone Party Themes for 2025
  • Top Causes of Elevator Malfunctions – And How to Prevent Them
  • kyron.bio raises €5.5M to use glycan engineering for advanced drug design
  • Velocity emerges from stealth with $10M to power the velocity of money
  • How to Incorporate Your Company Logo into Custom Workwear Without Compromising Style

Categories

Archives

Tags

Accounting bitcoin brand business growth business skills business success communication cryptocurrency Customer Service Data design Digital marketing ecommerce Efficiency employees Featured Article finance finances Health and Safety infographic insurance Investing investment legal legal services legal tips Management Marketing marketing strategy Outsourcing productivity property Real estate sales security SEO Social Media software starting a business startup Technology Trading Training website workplace

Innovation in Business MarTech Awards – Best SME Business Support Platform 2024 – UK

Innovation in Business MarTech Awards 2024 UK

CorporateLivewire: Innovation & Excellence Awards – Business Publication of the Year

CorporateLivewire: Innovation & Excellence Awards - Business Publication of the Year

Disclosure

We earn commissions if you shop through the links on this page.

Digital Marketing Agency

ReachMore Banner

Business Partner Magazine

Business Partner Magazine provides business tips for small business owners (SME). We are your business partner helping you on your road to business success.

Have a look around the site to discover a wealth of business-focused content.

Here’s to your business success!

Copyright © 2025 - Business Partner Magazine·