If the word “budget” makes you want to hide under your desk, you’re not alone.

But here’s the truth: Your budget is your business’s blueprint. It’s not about restriction: it’s about direction.

Whether you’re running a freelance side hustle or managing a growing team, knowing how to create a business budget can be the difference between coasting and scaling, surviving and thriving.

Let’s walk through a simple, no-fluff guide to creating a budget that actually works for you…not just on paper, but in the real world.

💡 Why Your Business Needs a Budget

Before we dive into how to build one, here’s what a business budget really does for you:

Helps you make smarter decisions with your money
Keeps spending aligned with your goals
Prepares you for slow months or unexpected expenses
Shows investors or lenders that you’re financially responsible
Gives you peace of mind (yes, really)

It’s not about micromanaging every penny: it’s about knowing what’s coming in, what’s going out, and what’s left.

🧩 Step 1: Know Your Income Streams

Start with the money coming in.

Write down all your income sources, including:

Client payments
Product sales
Subscription revenue
Retainer fees
Grants or other funding

If your income varies month to month (hello, freelancers 👋), look at the past 3–6 months and take an average.
💡 Use the lowest monthly income as your starting point if you want to budget conservatively.

💸 Step 2: List Your Fixed and Variable Expenses

Next, identify where your money goes. Break it into two categories:

✅ Fixed Expenses (same amount monthly):

Software subscriptions
Rent or coworking space
Internet/phone
Insurance
Payroll or contractor retainers

🔁 Variable Expenses (changes month to month):

Supplies
Advertising
Travel
Freelancer payments
Continuing education or courses

💡 If you’ve just started your business, research average costs for your industry or ask your bookkeeper (like us!) to help estimate.

💼 Step 3: Don’t Forget the Hidden Essentials

These often get missed—but can derail your cash flow if ignored:

Taxes: Set aside 20–30% of your net income
Emergency fund: Aim for 1–3 months of business expenses
Savings or reinvestment: For new equipment, rebrands, team hires, or growth

💡 Create a separate savings account for taxes and emergency cash. Out of sight = less temptation to spend.

📊 Step 4: Build the Budget

Now that you know your income and expenses, it’s time to put it all together.

Here’s a simple monthly layout:

💡 Use a spreadsheet or free tools like Wave, or sync with QuickBooks Online for live tracking.

🧠 Step 5: Check In Monthly

Your budget is a living, breathing document, not a set-it-and-forget-it task.

At the end of each month:

Compare your actuals to your budget
Note any major differences
Adjust for the next month

💡 At Breakspears Bookkeeping Services LLC, we provide monthly reports to help clients see how their budget is tracking and where improvements can be made.

🔁 Step 6: Refine as You Grow

As your business evolves, your budget will too. You might:

Add new income streams
Drop expenses that don’t bring ROI
Shift your marketing strategy
Hire help or outsource tasks

Budgeting is a habit, not a one-time event. The goal isn’t to get it perfect: it’s to stay informed, make smart decisions, and avoid financial surprises.

💬 Final Thoughts: A Budget That Works With You, Not Against You

Learning how to create a business budget isn’t about becoming a finance expert. It’s about building a simple, sustainable habit that helps your business grow……and gives you the confidence to lead it.

You don’t need to track every penny, but you do need to know where your money is going, and what’s coming next.

And if you’d rather have support getting it set up and reviewed? That’s exactly what we do.

📌 Need Help Creating a Budget That Actually Works?

At Breakspears Bookkeeping Services, LLC, we help freelancers and small business owners build clear, effective budgets that support real growth.

👉 Explore our monthly bookkeeping packages
👉 Book a free 15-minute intro call to get started.

Business Budgeting 101: How to Build a Budget That Works