Take the first step by reading this article on the 5 Steps to Creating a Basic Business Budget, your Business Budget!

 

Step 1: Identify and tally all your Income sources.
This step is critical to determine exactly how much your Business is bringing in each month and the source of that income. For example, start by reviewing your Sales figures. Your sources of course will depend on your Business model.
Step 2: Establish all Costs (expenses)
Begin with ‘fixed’ expenses items. Examples are rent, payroll website/internet and phones. These are usually fixed monthly accounts that can be gathered from records (contract /lease or other similar arrangements).

Step 3: Record Variable Expenses

These are costs that vary each month such as usage charged utilities (gas, electricity); travel costs or sales commissions. At the end of each month tally these expenses and if you monitor over time you will be able to see fluctuations and trends that will help with your financials and budgetary planning.
Step 4: Forecasting One-Off Spends
Predicting One-Time spends provides a buffer for both one-off and unplanned expenses. For example, a new laptop or unexpected like hiring an IT expert to deal with a security issue. Remember, it is important to factor these less frequent items into your planning as they do happen!
Step 5: Bringing It All Together
Now is the time to bring it all together to create a complete picture of your financial affairs for the month.
Firstly, list and tally-up all Expenses and do the same for Income. This exercise includes adding your total fixed costs, variable expenses and one-off spends; then compare cash flow in (Income) to cash flow out (Expenses) to determine your overall financial position.
Next, to summarise; Total Income minus Total Expenses = Total Net Income.
This calculation provides a snapshot of your profitability (or otherwise) to guide your financial decisions going forward.