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Setting a small business budget
There is so much to do when you are starting a small business.
From choosing a name to filing the right legal paperwork, it can seem neverending.
One of the steps that many business owners skip is setting up a business budget from the beginning.
Many business owners might shut down at the mere mention of creating a small business budget, but it is a necessary part of running a business.
If you keep putting off setting up a business budget, you are not alone!
Through the years of running my own businesses, accounting is one of the first things I outsource when I start making money. It’s worth the peace of mind to know that someone is keeping my books right.
But, I still have to create my own budget…and I pretty much suck at it.
I’m trying to get better about planning ahead and not spending money willy-nilly. So I started looking around for different business budget templates and methods.
I’ve gathered up a bunch of different business budgeting templates and am sharing them with you. There are a variety of types of templates. Some are only for budgeting and some are for tracking your income and expenses.
How to start a small business budget
Set some time aside to figure out what your monthly expenses are and then estimate your income for the first few months.
These numbers will change as you grow, so many sure you adjust your budget monthly for a while.
Once you have a guess for what your income will be, set aside enough to cover your monthly expenses plus a little cushion. Next, set aside a percentage for paying taxes, I do 30% but talk to your own tax professional to choose your number.
After your expenses and taxes are all set, you can pay yourself! (That’s the best part!).
I also like to set aside some money in my business account to pay for continuing education and a yearly conference or retreat.
If you have any big yearly expenses it’s nice to put aside a little bit each month so you are not paying for it all at once.
And there you are, you made a basic small business budget!