How to Create a Simple Budget for Your Business (Without Overcomplicating It)
Let’s be real: the word “budget” doesn’t exactly get most small business owners excited.
But here’s the truth — a budget isn’t about restriction. It’s about clarity. It tells your money where to go instead of wondering where it went. And the best part? It doesn’t have to be complicated.
If you’re a solo operator or run a small service-based business (cleaning, pressure washing, inspections, photography, etc.), here’s how to create a simple, no-fluff business budget that actually works.
Why Your Business Needs a Budget
A budget helps you:
Plan for slow seasons
Know how much you can safely spend
Avoid surprise tax bills
Make smarter hiring or equipment decisions
Build real profit into your pricing
Without a budget, you're just guessing — and guessing is risky.
Step 1: Start With Your Monthly Income
Add up how much money you usually bring in each month. If your revenue is seasonal or irregular, take an average from the past 3–6 months.
Example:
Jan: $5,200
Feb: $4,800
Mar: $5,500
→ Monthly average = $5,166
This is your expected income going forward.
Step 2: List Your Monthly Expenses
Break your expenses into two types:
Fixed Expenses (same every month):
Software subscriptions (QuickBooks, scheduling apps)
Phone plan
Insurance
Rent (if any)
Vehicle payments
Variable Expenses (change based on activity):
Fuel
Supplies & materials
Subcontractor pay
Marketing/ads
Repairs or tools
Don’t forget to include a line item for owner’s draw/pay (how much you want to take home).
Step 3: Estimate Taxes and Savings
Even if you’re a solo operator, you still need to set aside money for taxes — and ideally, some savings too.
A good rule of thumb:
25–30% of your net profit → set aside for taxes
5–10% → for emergencies or equipment upgrades
You can transfer this to a separate savings account every month.
Step 4: Put It All Together
Now plug it into a simple monthly format like this:
Category Amount
Income $5,166
Owner's Draw $2,000
Fixed Expenses $1,200
Variable Expenses $1,000
Taxes (25%) $750
Emergency Savings (5%) $258
Leftover/Profit-$42
In this example, you're slightly overspending — good to know now, before it becomes a problem.
Step 5: Review & Adjust Monthly
Budgets are living tools — not one-time setups. Set aside 30 minutes at the end of each month to:
Compare what you planned vs. what actually happened
Adjust any categories for the next month
Check if your profit goals are on track
Tools You Can Use
You don’t need anything fancy:
A basic Google Sheet or Excel doc works great
Try templates in QuickBooks or Wave
Use budgeting apps like YNAB (You Need a Budget) if you want something more detailed
Final Thoughts
Creating a budget doesn’t mean you have to pinch pennies — it means you’re being intentional with your money. And when you run a small business, every dollar matters.
Whether you’re saving for a slow season, investing in growth, or just trying to stay ahead of tax season — a simple budget will help you stay in control.
Want a free budgeting template or help building one that fits your business?
Let’s do a quick Bookkeeping Health Check and I’ll get you started on the right foot.
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And as always, thanks for reading and we’ll see you next week!