{"id":5126,"date":"2013-11-09T08:53:49","date_gmt":"2013-11-09T08:53:49","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=5126"},"modified":"2020-04-21T16:05:44","modified_gmt":"2020-04-21T21:05:44","slug":"small-business-budgeting-tips","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/small-business\/small-business-budgeting-tips\/","title":{"rendered":"Building a Budget for Your Small Business"},"content":{"rendered":"

ED Note:<\/strong> This is the second in our Small Business Saturday series. In the first installment<\/a> we looked at setting up your small business for tax purposes. \u00a0This week’s post digs into the basics of small business budgeting, why it is important and what to consider as you get started.\u00a0<\/em><\/p>\n

A solid budget is often the backbone of a business\u2019 future success. However, creating a budget is tough when a business is first starting, and difficult to stick to even at the best of times.<\/p>\n

Estimating your business\u2019 future revenue and expenses via a budget and sticking to it is important because it helps a small business look past the short-term and determine whether it will have enough money to operate, expand, and ultimately be successful. Without an adequate budget, a business exposes itself to overspending and leaving its coffers dry for the future, or not spending enough and hinder its growth and competitiveness.<\/p>\n

In a budget, you need to include projected revenue, typically on a monthly basis. An already established business can budget for its revenue based off of historical information, but for a new business, the process isn\u2019t as easy. Owners often must make assumptions based off of similarly situated businesses in their area.<\/p>\n

When budgeting for expenses, the business must take into account three types of expenses.<\/p>\n