Budget

Budget is a simple financial plan for a set period. It estimates your income and all expected costs, so you can see whether you will make a profit and have enough cash to pay bills on time.

Use it to set targets, control spending, and spot gaps early. In the UK, a business budget is an internal tool; it is not the government’s Budget and you do not submit it to HMRC.

What a simple business budget usually includes:

• Expected sales income
• Fixed costs (rent, subscriptions, wages)
• Variable costs linked to sales (materials, packaging, delivery)
• One-off purchases and investments
• Tax provision (for VAT and other business taxes)
• Cash flow timing: when money comes in and goes out
• Target profit and a small buffer