Any small business looking to creating a budget must first start by determining their income. Online budgeting tools can help small business owners keep track of this information. Once they have a handle on that, they can move on to identifying their fixed cost.
Fixed costs don’t fluctuate throughout the month. They include utilities, payroll, Internet, and web hosting. All this information should be recorded in the online budgeting tools you use. You should review these expenses every month. Confirm that the costs have stayed the same. If not, make adjustments if there has been a fluctuation in these fixed expenses.
Once these are determined, tally them up. Use this as a base for determining how much of your revenue you will be spending every single month. The situation is different if you are just starting your business. This might be your first month, so you may not have financial data that you can review. In this case, you want to use projected costs.
You can determine projected costs by looking at any contracts that you have signed for rent, utilities, and the internet. If you are going to hire employees, you can estimate the amount that you are going to pay them per hour and the number of hours that you are going to hire them to work. Use all of this to determine your projected costs.
After a couple of months, you will have the financial data that you need to turn your projected costs into actual expenses.
