What is Business Budgeting?

A small business budget is a financial plan that provides businesses with important information about the financial health of revenue, capital and expenditure. Budgets offer the knowledge and insight that allows you to eliminate wasteful spending and create profit, whilst keeping a record of the financial health of your business over a period of time, such as monthly or annually. They also help you determine how and where to spend your money, so you don’t end up with a deficit or cashflow problem because you’ve outlaid too much in the wrong place. 

A budget holds you to account by asking for a legitimate reason behind every penny you spend, and showing you whether your spending plan is meeting your spending reality.

Whether you are an SME, self-employed or freelancer, a business budget is crucial to the continued success of your business. However, it is only as useful if you frequently and accurately record information in it. It should be regularly re-evaluated to ensure it aligns with your business goals and is still working to create a profitable business. 

Sounds like too much hard work? That’s where we step in.

How Can AK Tax Help You With Business Budgeting?

If you are working hard to get your business off the ground, budgeting accounting will be one of the last things on your mind. If your SME is already up and running, it probably isn’t big enough yet to warrant employing someone full time to look after your budget.

At AK Tax we are seasoned experts and can create and manage your budget for you. This removes the stress and hassle from your life, whilst giving you the peace of mind of knowing that someone is keeping a close eye on the financial health of your business.

Our business budget experts in Kent will compile a budget that provides you with a clear picture of your finances so you can decide how much money to spend at the right time, and in the right way. The budget will also enable you to set goals for your business, and prioritise which goals to achieve in which order, based on the realistic metrics we have researched for you. Our budget plan will also help you identify problem areas in your spending, which will help you remove any wasteful spending and improve your profit margins.

As well as creating and monitoring your budget, we will also use our wealth of experience in budget accounting to suggest improvements that will help make your business even more successful in the months and years ahead. Our team will help you understand where your business currently stands and give you the tools to make sure it goes from strength to strength.


Business Budgeting FAQs

What are the benefits of a business budget?

A business budget gives you an overview of past, present and future spending, which enables you to:

  • Set targets. A budget allows you to create achievable, controlled targets that can be realistically achieved.
  • Create strategies. A budget helps to create a capital expenditure plan for your business, ensuring that you have money to spend in the right places at the right time.
  • Decide on priorities. Knowing how much money you have allows you to prioritise your spending.
  • Controls spending. A budget allows you to track your expenditure, keep track of where your money is going and predict where your business is heading.

How does a business budget work?

The process of planning a budget involves listing your business’s fixed and variable costs and then deciding on how to allocate funds to help you reach your goals. Fixed costs involve expenditures such as building or office leases or mortgage costs, insurance, vehicle leases, equipment payroll and utility bills. Variable costs include spending on materials, shipping and delivery costs, advertising and marketing, maintenance and repair of equipment, buildings and vehicles, and commissions for salespeople. Budgeting allows you to be realistic in how much you can spend and gives you a pot of contingency money in case of unforeseen circumstances, such as losing a major client or having to replace expensive equipment.

Explore our Business Advisory Guides

Tax Planning Strategies for your Business: Maximising Deductions and Credits

Investing in a strategic approach to tax planning is crucial to ensuring your business is in the best possible position to drive growth and optimise your financial resources. Tax regulations and laws can be difficult to navigate, quickly becoming overwhelming for even experienced teams. To help you get started on your tax planning journey, let’s […]

Read more

The Benefits of Outsourcing Payroll for SMEs

Although it can be tempting to want to handle every element of your business yourself on an in-house basis, outsourcing certain tasks and functions can ease some of the pressure on your shoulders and ensure you are spending both your time and your resources wisely. There are many benefits inherent in outsourcing payroll, so let’s […]

Read more

Navigating Tax Changes in 2024: What your Business Need to Know

The year 2024 brings significant changes to the UK tax landscape, impacting small businesses across the country. Understanding these changes and their implications is crucial for business owners to make informed decisions and adapt their strategies accordingly.  Here, we delve into the key tax changes affecting businesses in 2024 and provide actionable insights for navigating […]

Read more

Read all our Business Advisory guides


Get in touch

Please complete the form and we'll be in touch as soon as possible.

    Get in touch

    Whether you’re starting up or you’re an established business, we’ll make your work with us as easy as humanly possible – starting from the time you get in touch. Just call us on 01634 540040 or complete the form below and we’ll get back to you ASAP.