Free Business Budget Template for Small Businesses
Download our free Excel business budget template to plan income and expenses, compare actuals to your budget, and track your business finances.
A business budget template helps small business owners plan income and expenses, set financial targets, and monitor performance. By comparing your budget with actual figures, you can spot differences and see where you may need to adjust.
Our free Excel business budget template makes it easy to prepare a budget without accounting software. Enter your expected income and expenses, record actual amounts, and compare the results to see whether your business is performing as planned.
Why do you need a Business Budget Template?
A business budget template is an essential tool for any business owner. It allows you to track your monthly income and all the expenses and helps you make informed decisions about your spending.
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Without a budget, it’s easy to overspend on unnecessary items or undersave for future needs. With a budget, you can better control your finances and keep your business on track for long-term success.
A budget template can be a helpful tool for small businesses when money is tight. It can help you identify where you can make savings and reduce costs. It can also show when the company is losing money. A budget template helps you track income and expenditure so you can see where your money goes.
So, if you’re not already using a business budget template, now is the time to start. You’ll be glad you did when you see how much easier it is to stay on top of your finances.
Does accounting software include business budget templates?
Some accounting software packages include the feature if you are looking for a professional business budget template.
Both have a monthly fee and a free trial. Using accounting software to produce annual business budgets will ensure that all the accounts are in one place and use the figures within the software.
We recommend looking at Xero and QuickBooks.
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Below is an example of Xero Budget Manager. The report shows the actual figures from the accounts and has columns to enter the budget. You can download the report in Excel and save it for future use.
Why use our Business Budget Template?
Our business budget template is designed with a small business owner in mind. Here are the reasons you should use our Excel template.
Set the account codes – Set income and expense codes to the best ones for the business. There are five income codes and 13 expense codes.
Budget all on one page – Enter the budget figures on one page; it makes it easier to see the differences from month to month.
Enter actual figures – The spreadsheet includes a page for each month to enter actual figures.
Compare actual expenses and income to budget figures – Once the budget and actual figures are entered, a sheet shows actual v’s budget figures and the differences. It lets you see any overspending.
Gross profit and net profit – It shows the total gross profit and the net profit or loss on the budget and actual figures.
Free – The business budget template is free to download.
Easy to use – We have made it easy to use with instructions and a demonstration.
What to Include in a Small Business Budget Spreadsheet?
The budget spreadsheet should include all of the company’s business expenses and an estimate of its income. It includes Variable costs, such as materials and labour and fixed costs, such as rent and utilities.
If the business has been running for a while, a good starting point is to use previous figures to estimate the budget.
Below is a brief outline of what to include.
Business Income
Business income is hard to estimate, but the last year’s actual income as a starting point. If you have a seasonal business, ensure you show this in the figures.
Business Expenses
Business expenses are split into two parts: fixed costs and variable costs.
Fixed Costs
These costs are the same each month; they are the easiest to record. They include things like rent, rates, software plans, and salaries.
Variable Costs
Variable costs are harder to estimate because they may include unexpected costs. Unexpected expenses might include materials, contractors, commissions, and marketing costs. It is essential to have as much as possible and the best estimate.
Startup Budget Templates
If you are starting a business, you may need to account for additional expenses. These can include the cost of renting office space, hiring staff, and marketing your business. Estimating income and expenses can be difficult, but getting an accurate picture of your startup costs is essential. You may also include small business investments as startup income.
A business budget helps ensure you have enough capital to sustain your business in the early stages. Also, review your expenses and adjust your budget accordingly. It will help keep startup costs under control and prevent your business from facing financial difficulty.
What’s the difference between a Business Budget and a Cash Flow Forecast?
Cash flow forecasting is the process of estimating the cash that will come in and go out of a business over a period of time. A cash flow forecast can help a company manage its cash flow and avoid financial difficulties.
A budget is a plan for how a business will spend its money over a period of time. A budget can help a business to control its spending and save money.
Instructions for Excel Budget Template
The free download is available at the bottom of this page, and full instructions are available here.
A quick instruction list is as follows:
- Enter the business name and bank opening balance on the instructions sheet.
- On the categories sheet, enter the different income and expense categories.
- Review previous profit and loss reports to estimate budget figures, then enter them into the budget sheet.
- Enter the actual data for income and monthly expenses.
- Compare the budget to actual figures.
Excel Small Business Budget Template Example
An example of the small business budget template is available for download at the bottom of this article.
The example lets you see it in action and enter figures before completing it for your business.
FAQ
Below are a few frequently asked questions about business budget templates.
Do I need an Annual Business Budget Template?
Every business should have a business budget template to help it keep track of its income and expenses. A business budget can help you control your spending and save money. The free download is available at the bottom of this article.
Does it work with Google Sheets?
The business budget has been developed using Microsoft Excel 365. It will also work with Google Sheets and other spreadsheet platforms. If you use an older Excel version, the drop-down list might not work.
How to Budget if You Are Self-Employed
Sticking to a budget and making savings as a self-employed business is challenging. Read our article on how to budget if you are self-employed.
Can I make my own small business budget templates?
If you have experience in Excel or want to learn, you can set up your own budget template. There are lots of tutorials on YouTube.
Download FREE Small Business Budget Template
By downloading the Budget template, you agree to our licence agreement, allowing you to use the templates for your own personal or business use only. You may not share, distribute, or resell the templates to anyone else in any way.
Xero Accounting Software
Spend less time entering transactions into spreadsheets. Xero connects to your bank, helps you manage invoices and expenses, and supports Making Tax Digital.
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Other useful Spreadsheets
Cash flow forecast
Cash Book
Business Expenses
Conclusion for Small Business Budget Templates UK
A business budget is an essential tool for any business. It helps you control spending and track income. Using a business budget template can make the process much easier.
The example we provided is easy to use and lets you enter your own figures. Review your budget regularly and adjust it as needed. It will help you stay on track and avoid financial difficulties.
Disclaimer: This template is provided for general bookkeeping purposes and is not a substitute for professional tax advice. Check that it suits your circumstances and review current HMRC requirements before submitting information.
