Whether you’re just starting a new business or you’re already a small business owner, a business budget will help you assess your expenses, income, and overall business performance to ensure the long-term profitability of your business model. That’s why we’ve created this simple guide to walk you through the business budgeting process and show you how to create a budget that works for your business.
What is a business budget?
Before we dive into what information you need to include when creating a budget, it’s important that you understand what a budget for your business is and how it can help your business. In short, a budget is a detailed plan to help you manage your money and track your finances. It usually uses data from your previous year in business, as well as any relevant market trends in your industry, to predict how your business will perform in the next year. While many small business owners create a budget for the fiscal year, you can also choose to work in smaller periods of time by reassessing your budget at the end of each quarter.
If this is your first year as a business owner, don’t worry! Instead of relying on information obtained fro