{"id":49207,"date":"2021-09-16T09:28:42","date_gmt":"2021-09-16T16:28:42","guid":{"rendered":"\/us\/en\/blog\/?p=49207"},"modified":"2025-03-13T06:20:26","modified_gmt":"2025-03-13T13:20:26","slug":"small-business-budgeting","status":"publish","type":"post","link":"\/us\/en\/blog\/small-business-budgeting\/","title":{"rendered":"Your guide to small business budgeting"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">For new small business owners, preparing a budget can be overwhelming. Unknown values make financial planning tricky, and business budgeting can seem like a time-consuming, technical, and restrictive process. In fact, some <\/span><a href=\"https:\/\/clutch.co\/accounting\/resources\/why-small-businesses-need-budgets\"><span style=\"font-weight: 400;\">50% of small businesses<\/span><\/a><span style=\"font-weight: 400;\"> chose to avoid doing a documented budget in 2020, considering it unnecessary.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite this, businesses without a budget miss valuable opportunities to make financial decisions that will have the most impact on their ongoing profitability. A budget tells you if your business is heading in your intended direction, and whether you\u2019re on track to accomplish your annual financial goals. It doesn\u2019t have to be a wholly inflexible structure. Instead, it can allow you to allocate resources to your business\u2019s greatest benefit and preserve your cash flow.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fundamentally, a budget will show you how much money you have and how to spend it sustainably. In this guide, we\u2019ll cover the key aspects of <\/span>small business budgeting<span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#one\"><span style=\"font-weight: 400;\">What a budget is\u00a0<\/span><\/a><\/li>\n<li aria-level=\"1\"><a href=\"#three\">Why you need a budget<\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#two\"><span style=\"font-weight: 400;\">Common types of budgets<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#four\"><span style=\"font-weight: 400;\">How to use a budget<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#five\"><span style=\"font-weight: 400;\">Tips on how to budget most effectively\u00a0<\/span><\/a><\/li>\n<\/ul>\n<hr \/>\n<p><strong>\ud83d\udcb0 Need a budget template <em>right now<\/em>?\u00a0<\/strong>We&#8217;ve done the work for you.<\/p>\n<p><span style=\"font-weight: 400;\"><\/p>\n<div class=\"download-form-widget standart-download-form\" data-url=\"https:\/\/netstorage.ringcentral.com\/templates\/business_budget_template.xlsx\" data-id=\"69d494554fb0c\" id=\"69d494554fb0c\">\n\t\t<button tabindex=\"on\"  on=\"tap:69d494554fb0c.toggleClass(class='open')\" class=\"open-modal-download-action download-form-button\" type=\"submit\">Get the template<\/button><\/p>\n<div class=\"download-form-modal\">\n<div class=\"download-form-modal-body\">\n<div class=\"download-form-modal-content\">\n<div class=\"download-form-modal-title\">Organize your business finances with this handy budget template <\/div>\n<form class=\"download-form SMB\" method=\"post\">\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Full Name\" aria-required=\"true\" aria-invalid=\"false\" type=\"text\" name=\"fullname\" placeholder=\"Full Name\" data-dl-events-hover=\"true\" data-dl-element=\"text\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Email (please enter a work email address)\" aria-required=\"true\" aria-invalid=\"false\" type=\"email\" autocomplete=\"on\" name=\"email\" placeholder=\"Email (please enter a work email address)\" data-dl-events-hover=\"true\" data-dl-element=\"email\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"popup_form\" value=\"1\">\n\t\t\t\t\t\t<\/div>\n<div><input type=\"hidden\" name=\"Asset_ID__c\" value=\"ODAM-01523\" class=\"download-form-input\"><\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"Lead_Entry_Source__c\" value=\"RC Blog\" class=\"download-form-input\"\/>\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<button class=\"download-form-submit\" type=\"submit\" data-dl-element=\"button\" data-no-auto-dl=\"true\" data-dl-additional-info=\"download form\" data-dl-name=\"Get it now\">Get it now<\/button>\n\t\t\t\t\t\t<\/div>\n<\/p><\/form>\n<p> \t\t\t\t\t<button on=\"tap:69d494554fb0c.toggleClass(class='open')\" role=\"button\" tabindex=\"0\"  class=\"download-form-modal-close\"><\/button>\n\t\t\t\t<\/div>\n<div class=\"download-form-modal-thank\"> Enjoy!<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><\/span><\/p>\n<hr \/>\n<h2><span style=\"font-weight: 400;\"><a id=\"one\"><\/a>What is a budget?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A business budget is a forecast of your cash sources and expenditures. Like a financial statement, it typically covers a 12-month period.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For yearly budgets, you can compare your anticipated income and spending with your actual business performance over the past year. You can then use these findings to make informed decisions for next year\u2019s budget, such as potential business expenses and <\/span>future revenue<span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Use your business budget to assist in preparing for short and long-term financial obstacles. Make sure to set money aside for unexpected costs and possible liabilities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are different types of budgets, and for new businesses and startups (without accounting departments), it\u2019s important to know the difference. Let\u2019s take a look at the various types and how you might integrate them into your business plan:\u00a0<\/span><\/p>\n<h2 class=\"heading h2\"><span style=\"font-weight: 400;\"><a id=\"three\"><\/a>Why do you need a budget?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A budget allows your business to perceive and prepare for unexpected expenses before they arise and therefore alter your plans to prevent them from having a substantial financial impact.\u00a0<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Should you require a <a href=\"https:\/\/advancepointcapital.com\/business-loans\/\">business loan<\/a>, it can also convince potential investors that you are well versed in your <\/span>business\u2019s operations<span style=\"font-weight: 400;\"> and ready to anticipate future needs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Every company should prepare a budget before investing money in assets, hiring staff, or purchasing property. To meet your business goals, it\u2019s essential to evaluate how much sales revenue is necessary to support running your organization. In short, a budget is a valuable tool for managing your income, expenses, and planning.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s of particular use for the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Determining the revenue required for labor and raw materials<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Predicting expected profit<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Estimating revenues needed to support day-to-day operations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Totaling startup costs<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Budgeting will help your small business to cut money spent on unnecessary expenses. For example, where you are paying for multiple subscription services where one would do.\u00a0<\/span><\/p>\n<h3 class=\"heading h3\">Speaking of cutting costs&#8230;<\/h3>\n<p><span style=\"font-weight: 400;\">If a budget determines that costs need to be cut in communications, consider an app that provides an <\/span>all-in-one service<span style=\"font-weight: 400;\"> with multiple integrations. With phone calls, <a class=\"waffle-rich-text-link\" href=\"https:\/\/www.ringcentral.com\/video-call.html\">video calling<\/a>, messaging, and integrated services like file sharing and task management, versatile software can make for a positive balance sheet. Here&#8217;s how it looks in RingCentral, an all-in-one cloud communications app for teams of all sizes:\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-large wp-image-47343\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2021\/04\/Sharing-a-link-1024x585.png\" alt=\"\" width=\"1024\" height=\"585\" \/><\/p>\n<p>(Psst: there&#8217;s even a <a href=\"https:\/\/www.ringcentral.com\/ringcentral-video.html\">totally free version<\/a> for team messaging and video calls! No catch, no strings.)<\/p>\n<h2 class=\"heading h2\"><a id=\"two\"><\/a>Common types of budgets<\/h2>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">1. Master budget<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As the name suggests, a master budget combines all of the smaller budgets within your business and creates one overall forecast of expenses and returns. It provides your <\/span>small business<span style=\"font-weight: 400;\"> with a broad overview of its financial position and can be used to plan for future business needs and resource allocation to meet sales targets.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Typically, you can compile a small business master budget using an Excel spreadsheet, but it\u2019s often more efficient to use account software. Consider a universal template across budgets to make compiling them into one balance sheet more seamless.\u00a0<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">2. Operating budget<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">An operating budget is essentially a profit and loss report. It shows expenses for a set upcoming period, usually the next year. The nature of this type of budget means it\u2019s updated throughout the year as part of an ongoing process, either monthly or quarterly. Most frequently, it includes fixed costs, variable costs, capital costs, and operating expenses like <\/span><b>office supplies<\/b><span style=\"font-weight: 400;\">, Wi-Fi, etc.\u00a0<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">3. Program budget\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Program budgets are prepared with a particular project or business venture in mind. It\u2019s therefore a suitable form of bookkeeping for small businesses that focus on one project at a time. The program budget allocates funds while monitoring the project performance and therefore accounts for any variable costs and variable expenses that may arise.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Is a program budget right for you? Here are some advantages and disadvantages of program budgeting:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Advantages<\/b><\/td>\n<td><b>Disadvantages<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Determines the priority of projects and provides a good roadmap for future expenses.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Requires a lot of information and time to determine the financial resources and raw materials required for specific projects.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Helps identify areas for cost reduction.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Can lead to budgeting for dual expenses when costs overlap between the program budget and wider business budgeting.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Provides more accountability for your organization. Budgeting for one project at a time means better performance management and therefore improved financial health.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">If the budget is inaccurate, it can increase costs.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Identifies where areas might require increased funding and where pricing can be adjusted in response.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Supplies no contingency for unexpected projects that may arise and take precedence over the budgeted initiative.\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">4. Cash budget<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A cash flow budget helps business owners determine how much liquid cash is available and whether it\u2019s being used productively. Without consistently available money to buy inventory, pay bills, and handle payroll, a business won\u2019t last long.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Realistic <\/span>cash flow projections<span style=\"font-weight: 400;\"> will show you where money is coming from, the amount of money to expect, and when to expect it.\u00a0<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">5. Labor budget<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A labor budget plans for staffing and new hire costs.. It means you can plan payroll for your employees and gauge what the labor expenses will have on your profit margin. To keep accurate records of these expenses, make sure to provide each employee with <a href=\"https:\/\/www.formpros.com\/tax-forms\/create-paystub\/\">a check stub<\/a> detailing their earnings and deductions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Small business budgeting may forgo labor cost planning if they have small teams. However, as small businesses grow, planning for labor expenses becomes a fundamental accounting practice. Here are the pros and cons of a labor budget:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Advantages\u00a0<\/b><\/td>\n<td><b>Disadvantages<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Predicting labor costs is more stable than material costs.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">It can be difficult to adjust the budget between skilled and unskilled staff and differences in rates of pay.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Data for predicting wages is easily available.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Can give inaccurate estimates when workers are paid for overtime.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Make sure you always have sufficient finances to pay your staff and keep your business running productively.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No distinction is made between fixed and variable expenses.\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">One great way to reduce your labor costs is to outsource some of your staff. With RingCentral, employees can <\/span><a href=\"\/us\/en\/blog\/work-from-anywhere-is-the-future-say-goodbye-to-work-from-home\/\">work from anywhere<\/a><span style=\"font-weight: 400;\">. Their modern cloud-based phone system works for both desktop and mobile, and across all devices. Wherever your staff are based, all they need is an internet connection to communicate effectively.<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">6. Static budget<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This type of budget estimates fixed costs over a business year. It remains unchanged, even with fluctuating sales volumes.Therefore, the budget it produces can differ substantially from actual results.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A static budget is most suited to organizations that have a set fund or money allocated for a particular purpose. For example, nonprofits and government organizations will likely use static budgeting.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\"><a id=\"four\"><\/a>How to use a budget<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The best budgets are simple and flexible. They will indicate where your company needs more revenue than it currently earns and will adjust to changing circumstances.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you have set up your budget, it\u2019s important to <\/span>record expenses<span style=\"font-weight: 400;\"> and income totals at regular intervals. Should you reach a spending limit in a particular area, you will have to re-allocate money, re-evaluate the costs of goods sold, or put a cap on spending until the next financial year.\u00a0<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0The three main elements to consider when planning a budget are as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sales revenue<\/b><span style=\"font-weight: 400;\">: <\/span>This is the amount that you hope to make from the sale of your goods or services. It\u2019s important to estimate future sales with as much accuracy as possible, basing figures on past sales (for example, from last year). This should be the first line of your budget and where you can calculate achievable sales ambitions.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total costs<\/b><span style=\"font-weight: 400;\">: <\/span>Total costs are made up of fixed, variable, and semi-variable costs. Here, you must identify where costs might change (and by how much) and which will remain the same. Make sure to account for inflation in your estimates.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Profit<\/b><span style=\"font-weight: 400;\">:<\/span>Profit should always be high enough to make a return on your investments. A growing profit means a growing business. Make sure to account for emergency funds and put aside money for unexpected costs. Targeted profits should aim for a fair return on your labor and therefore should include your own reimbursement. Simply put, profit equals sales minus total cost.<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">If you hope to maximize your profit potential, it\u2019s important to regularly assess the performance of your sales team and analyze performance. Platforms like RingCentral can assist with this by creating <\/span><a href=\"\/us\/en\/blog\/live-reports-provides-rich-call-center-analytics-in-real-time\/\">live reports<\/a><span style=\"font-weight: 400;\"> and <\/span>logging <a href=\"\/us\/en\/blog\/cold-calling-scripts\/\">sales scripts<span style=\"font-weight: 400;\">.<\/span><\/a><\/p>\n<h2><span style=\"font-weight: 400;\"><a id=\"five\"><\/a>Top budgeting tips<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">1. Stay disciplined<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">For your small business to succeed, it\u2019s important to stay focused on your biggest goals. Always track your business costs and keep personal expenses separate. The more accurate and well-organized your records, the easier it will be to produce an accurate forecast.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">2. Get good advice<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s always worth consulting an expert when you feel you may be out of your depth. In budgeting, especially, guidance can provide your business with greater security. Hiring an accountant can also free up your time to focus on those jobs where you might provide more value.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Handing over some of the workload doesn\u2019t have to mean losing control. Using an all-in-one business communications solution will mean you can connect with your advisors from anywhere.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.ringcentral.com\/apps\/\"><span style=\"font-weight: 400;\">RingCentral <\/span>integrates with hundreds of work tools<\/a><span style=\"font-weight: 400;\"> like Microsoft, Quickbooks, even Salesforce. Check it out: <\/span><\/p>\n<p><iframe sandbox=\"allow-scripts allow-same-origin allow-presentation\" title=\"RingCentral Integrations | Salesforce\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/6OF-zntl6Cc?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen sandbox=\"allow-same-origin allow-scripts allow-presentation\"><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">That means you can stay in the loop whenever your account manager makes amendments to your budget. You can also use their <\/span>screen sharing <span style=\"font-weight: 400;\">feature to go through early budget drafts together.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3. Be realistic and flexible<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A budget is a living document<\/span><span style=\"font-weight: 400;\">\u2014<\/span><span style=\"font-weight: 400;\">it needs to be able to adjust to changes quickly. Consider which areas of your budget are most likely to need future edits and compensate for uncertainty by overestimating your expenses. Client-driven projects often incur unexpected costs. Staying flexible with your estimates means you are prepared for the unexpected and have a financial safety net.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">4. Communication is key<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In the era of social media, it\u2019s essential that new small businesses budget for marketing. Where you may be tempted to spend funds in other areas, marketing in 2021 should be considered an essential business expense. A budget that accounts for online advertising is one that invests in its business\u2019s future.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Have a look at these dos and don\u2019ts for spending your money on marketing:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Dos<\/b><\/td>\n<td><b>Don\u2019ts<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Build a marketing plan based on your customers and their purchase habits.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Don\u2019t spend money before gathering accurate information.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Always negotiate for the best rate from advertisers and influencers.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Don\u2019t feel confined by the previous year\u2019s budget. As your business grows, you\u2019ll need to adjust the funds you assign to digital marketing.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Balance your marketing budget with other business expenses.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Don\u2019t overestimate the potential success of a market campaign and over-buy supplies.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 class=\"heading h2\"><span style=\"font-weight: 400;\">\u00a0<\/span>Highlights:<\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Produce a budget to prepare for predicted income, expenses, and unexpected costs.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Focus your budget on sales revenue, total costs, and profits.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consult an expert when you feel out of your depth.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cut unnecessary expenses by picking <\/span>all-in-one apps that combine processes in one platform<\/li>\n<\/ul>\n<h2 class=\"heading h2\"><span style=\"font-weight: 400;\">Small business budgeting: An ongoing process<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Remember<\/span><span style=\"font-weight: 400;\">\u2014<\/span><span style=\"font-weight: 400;\">budgeting is an ongoing process that requires dedication and constant monitoring. Taking the time to budget effectively will give your business the best financial insights with which to make positive business decisions. It will help your profits grow and allow you to scale your company accordingly. Overestimate expenses to prepare for unexpected costs, help your business run smoothly, and stay on track to achieve your targets.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Budgeting is an indispensable tool for transforming your business goals into reality. It builds confidence in your organization and boosts employees towards financial goals.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Pick a type of budget, a <\/span><a href=\"\/us\/en\/blog\/business-budget-template\/\">budget template<\/a><span style=\"font-weight: 400;\">, and consider the above tips to begin planning your budget today!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For new small business owners, preparing a budget can be overwhelming. Unknown values make financial planning tricky, and business budgeting can seem like a time-consuming, technical, and restrictive process. In fact, some 50% of small businesses chose to avoid doing a documented budget in 2020, considering it unnecessary.\u00a0\u00a0 Despite this, businesses without a budget miss &#8230;<\/p>\n","protected":false},"author":29,"featured_media":49129,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17901],"tags":[639,41441,29411,41442],"class_list":["post-49207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-leadership","tag-budgeting","tag-budgets","tag-finances","tag-financials"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.3 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Your guide to small business budgeting | RingCentral Blog<\/title>\n<meta name=\"description\" content=\"Time to get your finances in order? We&#039;ve got you covered. 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