How to Create a Small Business Budget in 6 Easy Steps

Back In Black Bookkeeper
Aug 28
2 min read

man at desk working on small business budget

Creating a Small Business Budget

Creating a budget for your small business might sound intimidating, but it doesn’t have to be. Think of it as your financial GPS — guiding you toward your goals and keeping you from going off track. With a solid budget, you’ll know where your money is going, how much you can spend, and how to prepare for the future.

Here’s how to build a small business budget in six easy steps.

Step 1: Gather Your Financial Information

Start with the basics: income statements, expense reports, bank statements, and sales forecasts. The more accurate your starting point, the better your budget will be.

Step 2: List All Sources of Income

Identify where money is coming in — whether it’s sales, services, or other revenue streams. Be realistic and base this on past performance plus reasonable projections.

Step 3: Track Fixed and Variable Expenses

Separate your must-pay expenses (like rent, payroll, and utilities) from variable ones (like marketing, travel, and supplies). This helps you see what’s flexible when money gets tight.

Step 4: Plan for Taxes

Set aside a percentage of income for taxes. Treat this as non-negotiable to avoid surprises at year-end.

Step 5: Allocate for Savings and Growth

Budgets shouldn’t just cover bills — they should prepare you for growth. Allocate funds for emergencies, reinvestment, and expansion opportunities.

Step 6: Review and Adjust Regularly

A budget isn’t a one-and-done exercise. Review monthly, compare against actuals, and adjust as needed. Flexibility is key to staying on track.

Need a budget that actually works for your business?

Back in Black Bookkeeping offers custom budget creation and monitoring services to help small business owners stay organized and plan for growth with confidence.

📧 support@backinblackbookkeeper.com | 🌐 backinblackbookkeeper.com

In our next post, we’ll dive into Mastering Cash Flow & Expense Tracking: The Lifeblood of Your Business, and show you how to keep your numbers working for you day-to-day.