Creating a budget for your small business may seem daunting, but it’s not as hard as you think.

Firstly, well done for being here. Creating a small business budget may seem like an obvious part of the process, but it’s often overlooked or not done properly.

Budgeting and forecasting for your small business may sound overwhelming, but it doesn’t have to be. I’ve broken it down into a few simple steps below.

It’s a word we hear all the time, but what does it actually mean? A budget makes an informed prediction about how much money will flow in and out of your business over your selected period of time.

Typically – to make it easier for tax purposes, and accountants like me – they’ll cover one financial year. But it’s also helpful, especially in the early days of running a business, to look at your monthly financial activity as well.

To make sure you don’t go broke! Budgeting and forecasting will help you determine whether your business idea is financially viable, and if you can afford to put in what is required to get it started.

How much will it cost to start up?
Will you need to borrow any money?
When will you break even?
How much do you need to charge customers to make sales?
Can you afford to scale or hire staff?