Create a small business budget template.

Learn how to make a small business budget and stay on top of your income and expenses.

Money makes or breaks businesses. A well-planned business budget can help you make the right financial decisions and demonstrate your business’s viability. Maximize your business’s financial potential with our small business budget template recommendations and learn helpful tips on how to budget for a small business.

Why is a business budget template important?

Using an established business budget template offers numerous advantages that contribute to the financial success of a company. By providing a structured framework for organizing income, expenses, and cash flow, a budget template offers a clear overview of the company’s financial situation.

Budget templates enable businesses to forecast and plan for the future, fostering informed decision-making and goal-setting. Additionally, a budget template facilitates effective communication and collaboration within the organization, promotes accountability, and serves as a valuable tool for strategic decision-making.

How to create a business budget template.

To build a comprehensive business budget template, you should include a few essential elements that capture the financial aspects of your organization. By following a systematic approach, you can create a budget template that accurately reflects your revenue, expenses, and financial goals. These next sections will delve into the key steps involved in creating an effective business budget template:

1. Add up revenue in a business budget worksheet.
2. List your fixed costs.
3. Calculate inconsistent business expenses.
4. Set money aside for surprises.
5. Finalize your small business budget spreadsheet.

1. Add up revenue in a business budget worksheet.

Start by figuring out all your income sources. Go through your statements and add up all funds coming into your business. Remember to calculate the revenue (all incoming money) and not profit (money left after expenses).

2. List your fixed costs.

Make a list of all your predictable expenses. They could include:

• Rent
• Business supplies
• Payroll
• Debt
• Insurance
• Taxes

Every business is different, so make sure to evaluate your costs carefully.

3. Calculate inconsistent business expenses.

Take the next step by going through your variable expenses. This is a much larger category and could include travel costs, usage-based utilities, and product shipping. With time, you’ll get a better idea of how much your variable expenses fluctuate from month to month, which in turn helps you budget more wisely.

4. Set money aside for surprises.

It’s important to save funds for emergencies, like sudden equipment failures. Predict how much such situations could cost and add them to your budget. It’s much better to be prepared than to scramble for funds when a disaster strikes.

5. Finalize your small business budget spreadsheet.

Now that you have the numbers in place, it’s time to compile your business budget. Subtract your expenses from your income to get your net income. If this number is negative, you’ll need to make budget cuts.

Should a small business budget template differ from a large business budget template?

The needs and considerations of small businesses may differ from those of larger corporate entities. While the overall purpose of budgeting remains the same, there are some factors that small businesses may want to take into account, which may vary from what larger businesses prioritize. Here are a few key differences to consider:

• Scale of operations. Small businesses typically use budget templates that focus on capturing a narrower range of revenue streams and expenses that are specific to their size and industry. Large businesses, on the other hand, may need to incorporate multiple divisions, departments, or product lines into their budget template to encompass their diverse operations.
• Flexibility and adaptability. Small businesses often need to be agile and adapt quickly to changing market conditions. Large businesses may have a more rigid budgeting framework that requires thorough approval processes and may be less responsive to immediate changes.
• Resource allocation. Small businesses may need to allocate resources carefully, especially if they have limited capital or face constraints in terms of personnel or infrastructure. In contrast, larger businesses may have more resources at their disposal, allowing them to allocate funds to building long-term strategic initiatives, supporting research and development, or expanding into new markets.
• Reporting and decision-making. Small businesses often have a closer-knit team, and their budget templates may require less complexity in terms of reporting. In contrast, large businesses may have a hierarchical structure that demands more detailed reporting and analysis, with the budget template serving as a comprehensive tool for communicating financial information across various levels of management.

The effectiveness of a budget template lies in its ability to provide a clear financial roadmap, facilitate informed decision-making, and support the financial objectives of the business, regardless of its size.

Additional business budgeting templates and resources.

Once you know how to create a small business budget template, consider these additional resources for managing business finances:

• Get steps for creating a budget planning worksheet template.
• Learn about a cash flow budget.
• Learn how to scan receipts for tax time.
• Learn about annual operating budgets.

When you run a business, it’s smart to convert your spreadsheets into a business budget PDF. They’re easier to share with partners since you can view them on any device. With Adobe Acrobat, you can convert practically any file, share PDFs with multiple recipients, fill and sign forms and contracts, and much more.

Find out more ways to work with PDFs online. Discover everything Acrobat can do to help advance your business.