Business Budget Calculator

Business Budget Planning

A business budget is a financial plan that outlines your expected revenue and expenses over a specific period. Creating and maintaining an accurate budget is essential for small business owners and startups to manage cash flow, plan for growth, and make informed financial decisions.

The 50/30/20 Business Budget Rule

Adapted from personal finance, the 50/30/20 rule for business budgeting suggests allocating your revenue as follows:

• 50% Operations: Core operating costs like rent, salaries, utilities, and insurance that keep your business running day-to-day.
• 30% Growth: Investments in marketing, technology, professional development, and expansion that help your business scale.
• 20% Savings / Reserves: Emergency funds, debt reduction, retained earnings, and capital reserves for stability.

Tips for Small Business Budgeting

• Review monthly: Compare actual spending to your budget and adjust categories as needed.
• Track seasonality: Many businesses have seasonal revenue fluctuations. Plan for slower months.
• Separate personal and business: Keep business finances completely separate from personal accounts.
• Build an emergency fund: Aim to save 3-6 months of operating expenses for unexpected downturns.
• Account for taxes: Set aside funds for income tax, GST/HST, and payroll remittances regularly.

Common Business Expense Categories

When building your budget, consider all expense types: fixed costs (rent, insurance, subscriptions), variable costs (supplies, shipping, commissions), and semi-variable costs (utilities, phone plans). Don't forget about periodic expenses like annual licensing fees, equipment maintenance, and professional development.