Overview

A business budget is the most effective way to keep your business and its finances on track. Budgeting is important as it helps you to stay in control of your business.

A business budget outlines what you will spend your money on and how that spending will be financed. A budget is a plan to:

• manage your finances
• make sure you can continue to fund your current commitments
• help you to make confident financial decisions and meet your objectives
• make sure you have enough money for your future projects

Before creating a budget

You should collect historical information on sales and costs if they're available. These could give you a good indication of likely future sales and costs, and will help you to create your budget. You should also think about:

• what your sales plans are
• how your sales resources will be used
• any changes in your market or competitors