Your business is finally starting to make money. How do you keep track of your business’ profits?
Here are three simple tips for how to create a budget for a business.
1. Use simple tools to create your budget.
You don’t need expensive or complex budget programs to know where your money comes from and where it’s going, especially if you’re just getting started.
Popular, free tools like a simple Microsoft Excel or Google can help you create a “starter budget” to track your business’ money.
2. Track your business’ sales.
List each of your business’ products and services. Type or write the dollar amounts of sales made from each of these items/services during each week and each month.
Also, make notes about any other income your business receives, such as any loans or donations from other people or organizations.
3. List your business costs.
Keep a list of your business expenses. This can include costs for your business’ website, any money spent on advertising (online or elsewhere), shipping costs, etc.
Key takeaways for how to create a budget for a business
You don’t need to be the top student in your math class to create a budget that works for you and your business. Remember these three easy steps for setting up your business budget:
- Start with using simple tools (like Microsoft Excel or Google Sheets).
- Type or write down your business’ sales and income amounts.
- Don’t forget to include your business’ costs.
Knowing how you’re making and spending money gives you the information you need to make smart decisions about how to grow your business and plan for the future.