monthly expenses spreadsheet for small business

#MONTHLY EXPENSES SPREADSHEET FOR SMALL BUSINESS HOW TO#

While budgets are all about predicting the future with as much accuracy as possible, some things simply can’t be foreseen. Instead, break those subscriptions down into the specific tools you’re using and how much you pay for each. For instance, don’t just write “software subscriptions”. It’s important to be as detailed as possible in describing your variable costs. Those non-essential variable costs, known as “discretionary expenses”, can include: Others are essential recurring costs that rise and fall based on how much you use them (like utilities), or non-essential but nice-to-have expenses that can directly or indirectly affect the performance of your business. While they naturally vary from one business to another, they often include things like:Īdd all of these costs together, divide them by 12 – unless you have a specific reason to only account for certain fixed costs in specific months – then take them away from your revenue. Start by analyzing your fixed costs – that is, any recurring costs that are essential for your business to function. Having added all your revenue streams together, it’s time to get onto your expenses.

Maybe you should consider adding a temporary worker or two to your team to cope with busy periods? 2. This allows you to plan for seasonal peaks and troughs. Add all the different revenue sources together and break them down month by month to identify exactly how much money comes into your business (and when). Look over your historic income, ideally going back two or three years to help you analyze trends. Costs can fluctuate – and will often be proportionally higher in the early life of the business – so revenue gives you a clearer picture of your earning potential. Why revenue rather than profit? Because revenue is all the money you generate, whereas profit takes into account all your fixed and variable costs (more on these later). You can’t draw up a budget until you understand your current sources of revenue.

#MONTHLY EXPENSES SPREADSHEET FOR SMALL BUSINESS HOW TO#

With that in mind, here’s how to create your own small business budget along with a free template. In other words, when they make the effort to produce a budget, they tend to stick to it. That same survey from Clutch found just one-third of small businesses that created a budget in 2020 ended up spending more than expected. Of course, small business owners are extremely busy, which means finding the time to draw up a budget can sometimes feel impossible.īut it really is worth the effort. Even more concerning, 19% of companies with 10 employees or fewer didn’t create any kind of budget. Half of small businesses did not create an official, formally documented budget in 2020, according to research from Clutch.

Monthly expenses spreadsheet for small business