Business Budget 

Every great financial plan starts with a sound budget. If you’re trying to pay off bills or save for a dream vacation, a budget is your first step toward making your financial goals a reality. Follow these steps for setting up a realistic budget that gets you where you want to go.By means of budget it is possible to calculate how much it costs to set up a business and how much it costs to keep the business running.
Budget for many business are one of the worst thing about starting, they are usually afraid of it and think that only accountants can make budgets.It is not true, budget are simple to make , it’s only addition and multiplication.

There are 8 simple steps that can help you to make budget for your business
Gather financial statement from where you can;

Record / write down all sources of income,make sure to also write down the expenses whether you are the owner of the business or you have income from outside.

Create a list of monthly expenses,write down all the expected expenses in the month like home,financial, medical, transport, utilities,enjoyment,family expenses essentially everything you spend money on.

Divide expenses into variable and fixed expenses,from the expenses we have seen above some are fixed like home expenses they don’t change, they are particular the same each month while variable such as utilities and enjoyment are not fixed they keep changing from month to month, So to categorize these expenses comes in help when making adjustment.

Total your monthly income and monthly expenses, add your income and add the expenses, if you found out that income is higher than expenses, it shows that you don’t have good starts means that you have to prioritize this excess in area of retirement saving to eliminate the debt,If you are showing a higher expense than income, it means some changes will have to be made, you should look at your variable expenses to find areas to cut. Since these expenses are typically non-essential, it should be easy to shave a few dollars in a few areas to bring you closer to your income.

Make adjustment to expenses,once you finished to list all your expenses, the goal of making the adjustment is to balance the expenses and income,This means that all of your income is accounted for and budgeted for a specific expense or savings goal.

Review your budget monthly, To stay on track you need to have regular basis review of your budget.
After the first month take a minute to sit down and compare the actual expenses versus what you had created in the budget. This will show you where you did well and where you may need to improve.