Step by step to make a business budget

Whether you are  starting a business , or want to grow yours, a business budget is a powerful ally in your company's financial management. When making a budget you investigate the sources of income, expenses, and can plan for the future. Before you start, check out the tips on how to make a business budget. strives to be Pakistan's biggest real estate developer ever, guaranteeing the highest international standards, prompt execution, and lifetime customer loyalty. With projects like blue world city


What should you pay attention to before making a budget?


Before making the budget itself, have clear goals (avoid the vague classics “grow” or “improve profitability”). Are you going to start a business? So you have to carry out a market study, assess the viability conditions, put together a business plan.


Do you want to increase your company's success? Here, make a diagnosis of your business: what is the average sales in previous years, what has changed (in customers, in the markets, in your own company), seasonality... all these parameters must be taken into account in the It's time to make a budget, which you'll rely on to conduct the financial management of your business.


Either way, set goals and objectives. Is your goal to increase sales by x% in the first quarter? Will it reduce expenses and optimize cash flow? Keeping in mind where you want to go, and how you intend to do it, is half the way to getting a reliable quote? How to make a quote?


You need to define whether the budget you are going to make is monthly, quarterly, semiannual or annual. All these models are valid as long as you set clear goals.


How to make a budget?


This calculation will include all monthly or annual income, such as sales income (recurring or exceptional) or dividends from investments, for example.


Define all fixed costs


The fixed monthly costs you have with your business are the easiest to understand, however, it is not to skip any, no matter how small:

  • lace;
  • Lease of physical spaces: offices, warehouses;
  • Loan payments;
  • Salary;
  • Expenses with internet, telephone;
  • Insurance;
  • accounting and legal support services;
  • Expenses with hosting the website and online store;
  • Taxes and fees;
  • Covenants.


Include variable expenses


Variable expenses are a little more complicated, as they can differ a lot from month to month. And so they can have a big impact on the health of your business. Examples are:

  • Hiring freelancers or services;
  • Raw materials;
  • Expenses with water, electricity and gas;
  • Travel, meals and events;
  • marketing services;
  • Consumables (paper, office supplies, etc.).


Expect unexpected expenses

Certainly the hardest thing to predict are one-time expenses, as they can come up unexpectedly. It is always good to maintain a working capital in order to cover costs with:

  • Material;
  • Works and construction;
  • Electronics.

As a good practice, this coefficient should correspond to at least 10% of the total of the remaining expenses.


Keep track of dates and deadlines


Knowing the average terms of payments and receipts from customers and suppliers is also very important, and you should include it when making a budget for your company.


The best thing is to do a month-by-month planning of the expected inflows and outflows of money (which includes all the items mentioned above). This way, you are sure that you will not have liquidity problems in the months for which you are drawing up the budget.


Analyze your business budget


The great advantage of making a business budget is that it allows you to make decisions based on forecasts. Analysis and monitoring are, therefore, fundamental steps to identify problems and opportunities for growth in your business. Here are some tips:


  • Involve the team: present and discuss the budget with your team to make sure you don't miss anything;
  • Be visual: Try to summarize key information in simple graphs or use color coding to help you analyze and read the data. It helps to keep data present if the most relevant information is physically available for consultation;
  • Be structured: schedule recurring meetings with your team to keep up with the evolution of the main items, and react in case of deviations;
  • Delegate: is the contribution of each member of your team to the budget clear? At what hierarchical level in your organization are budgets made?

It is, therefore, necessary to adopt methods and strategies to carry out this monitoring closely, and know how to act when necessary. Why not get some help from technology? Jasmin: the ally to make a business budget.


Jasmin is an expert management software that helps you manage your business. Endowed with intelligence and predictive power, Jasmin offers you  budgeting  tools  and results demonstration  , so you can make a more effective control of the course of your business, and simply and quickly.


Designed for entrepreneurs who want to make their business successful, Jasmin has indispensable tools for the leaders of the digital world. In addition to being 100% cloud and certified, it allows you to:


  • Identify purchasing needs and control stocks;
  • Manage the purchase and ordering process for customers and suppliers;
  • Analyze average payment and receipt terms from customers and suppliers;
  • Issue delivery notes, invoices and receipts;
  • Billing in multiple currencies;
  • Respond to tax obligations and issue files to the Tax Authority;
  • Get statistical analysis quickly and intuitively;
  • Predict results and profit margin;
  • Manage several companies autonomously.

More: this software features a free version - Jasmin Express. 



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