Software subscriptions. Office rent. Employee benefits. Is your business money disappearing into thin air? A business budget template puts you back in control by tracking every dollar you spend.
Whether you’re launching a startup or scaling a business, you’ll see exactly where you need to cut costs and invest in growth.
In my roles, I have created budgets for entire projects and smaller writing projects.
Although organizing the numbers sounds difficult, I find business budget templates simplify the process. Additionally, there are thousands of business budget templates to choose from.
In this article, I present seven budget templates to help you organize your finances. But first, you’ll learn about the different types of business budgets and how to create one.
What is a Business Budget?
A business budget is a spending plan that estimates a business’s income and expenses for a specific period of time, usually monthly, quarterly or annually. A business budget follows a set template – you fill it out with estimated revenue and any recurring or expected business expenses.
Let’s say your company is planning a website redesign. You would need to break down costs by category: software, content and design, testing, and more. With a clear breakdown, you can estimate how much each category will cost and compare that to actual costs.
Types of Business Budgets
Business budgets are not one size fits all. In fact, there are many types of budgets that serve different purposes. Let’s take a look at some commonly used budgets.
Master budget
This budget includes details such as projected revenue, expenses, and profitability for each department or business unit. Important financial aspects such as cash flow and capital expenditure are also taken into account. The budget even creates a balance sheet to show the financial position of the organization.
The master budget serves as a guide for decision-making, aids in strategic planning, and provides a clear picture of your company’s overall financial health and performance. It connects everything and helps the organization move in the right direction.
For example, imagine you run a software company. Your total budget would include:
- Sales team budget ($100,000 for salaries and commissions).
- Marketing budget ($50,000 for ads and campaigns).
- Development budget ($200,000 for engineering talent).
- Operating budget ($75,000 for office space and utilities).
This consolidated view shows that you need $425,000 to manage all departments for the year. You can then compare this to your projected revenue of $600,000 to see if your business plan is viable. The overall budget helps you identify potential problems (e.g. overspending on marketing) before they become problems and identify opportunities (e.g. having enough profit to hire another developer).
Pro tip: Based on my experience managing various business budgets, I recommend starting with a master budget and then creating more specific budgets as needed.
Operating budget
Your operating budget shows how much money your business expects to earn and spend over a specific period of time, usually a year. It forecasts your company’s revenue and presents expenses such as salaries, rent, bills and other operating costs.
By comparing your actual expenses and income to budgeted amounts, your business can see how it’s performing and make adjustments if necessary. It keeps things under control and allows your business to make smart financial decisions and stay on top of its goals.
For example, a small marketing agency’s monthly operating budget might look like this.
- Expected income: $50,000 from customer loyalty
- Regular issues:
- Staff salaries: $25,000
- Office rent: $3,000
- Software subscriptions: $1,500
- Utilities: $500
- Marketing: $2,000
By tracking these numbers on a monthly basis, you can spot trends—like when customer revenue drops in the summer months or software costs rise—and adjust your spending before problems arise.
Cash budget
A cash budget estimates your business’s cash inflows and outflows over a specific period of time, usually a month, a quarter, or a year. It provides a detailed forecast of cash sources and uses, including revenues, expenses, and financing activities.
The cash budget helps you effectively manage your cash flow, plan for cash shortages or surpluses, assess external financing needs, and make informed decisions about resource allocation.
By using a cash budget, your business can ensure it has enough cash to meet its financial obligations, manage fluctuations, and take advantage of growth opportunities.
For example, imagine you run an e-commerce company.
- Entry fee: $20,000
- Estimated cash-in:
- Product sales: $15,000
- Affiliate Earnings: $2,000
- Restocking: $8,000
- Shipping cost: $3,000
- Staff payroll: $5,000
- Marketing: $2,000
This shows that you will end up with $19,000 in cash. However, if your inventory payment is due before customer payments arrive, you may still experience a temporary cash flow shortage. A cash budget helps you identify and plan for these time gaps.
Static budget
A static budget is a financial plan that remains unchanged regardless of actual sales or production volumes.
This budget is typically prepared at the beginning of a budget period and does not take into account fluctuations or changes in business conditions. It also assumes that all variables such as sales, expenses and production levels remain the same throughout the budget period.
While a static budget provides a basis for comparison, it may not be realistic for companies with fluctuating sales volumes or variable expenses.
For example, if you run a consulting business, your annual static budget might allocate $60,000 for advertising – that’s $5,000 per month. Even if your first quarter goes amazingly well and you could benefit from increased ad spend, or a slow third quarter where you should make cuts, the $5,000 monthly allocation remains unchanged on a static budget. While this makes planning easier, it can limit your ability to adapt to changing business conditions.
Department budget
A department budget focuses on the financial aspects of a specific department in your company, such as sales, marketing, or human resources.
When creating a department budget, you can consider revenue sources such as department sales, grants, and other sources of income. On the expense side, consider costs such as salaries, materials, equipment, and any other expenses specific to that department.
The goal of a department budget is to help the department manage its finances wisely. It serves as a guide for decision making and effective resource allocation. By comparing actual numbers with budgeted amounts, department heads can see if they are on track or if adjustments need to be made.
Let’s look at an example of a marketing department’s quarterly budget.
- Lead Generation: $100,000
- Event sponsorship: $25,000
- Team salaries: $75,000
- Content creation: $15,000
- Advertising campaigns: $20,000
- Marketing tools: $5,000
This detailed breakdown helps the marketing leader track performance against goals and adjust tactics – such as shifting money from underperforming advertising campaigns to successful content creation – without impacting other departments’ budgets.
Capital budget
A capital budget is about planning large investments for the long term. The focus is on deciding where to spend money on things like upgrading equipment, maintaining facilities, developing new products and hiring new employees.
The budget takes into account the cost of buying new things, upgrading existing things, and even takes into account depreciation, where something loses value over time. The return on investment is also taken into account, such as how much money these investments could bring in or how they could save costs in the future.
The budget also provides for various ways to finance these investments, whether through loans, leasing or other options. It’s about making smart decisions for the future, evaluating cash flow and choosing investments that will help the company grow and succeed.
For example, a growing technology company might create such a 5-year capital budget.
- Year 1: $200,000 for new office space
- Year 2: $150,000 for server infrastructure
- Year 3: $300,000 for custom software development
- Year 4: $250,000 for expansion to second location
- Year 5: $100,000 for equipment upgrades
Each investment is evaluated based on ROI and depreciation. The company could choose to lease the office space (lower upfront costs) but purchase the servers outright (better long-term value).
Working budget
A labor budget helps you plan and manage costs for your employees. This involves figuring out how much your company will spend on wages, salaries, benefits, and other work-related expenses.
When creating a work budget, consider how much work needs to be done, how many people you will need to do it, and how much it will all cost. This can help your company predict and control work-related expenses and ensure adequate staffing levels.
For example, a small design agency’s monthly work budget might look like this.
- 2 senior designers ($90,000/year each)
- 3 junior designers (each $60,000/year)
- 1 Project Manager ($75,000/year)
- Benefits and taxes (30% of salary): $121,500/year
- Freelance budget: $5,000/month
- Training and Development: $2,000/month
This helps the agency plan for hiring needs and ensures it has enough billable hours to cover labor costs.
Project budget
A project budget is a financial plan for a specific project.
Let’s say you have an exciting new project you want to tackle. A project budget shows how much money you need and how you will distribute it. It covers everything from personnel to equipment and materials – basically everything you need to complete the project.
By creating a project budget, you can ensure that the project is financially feasible. It tracks how much you planned to spend over time and how much you actually spend.
This way, you will have a clear idea of ​​whether you are staying within your budget or whether there are financial challenges that need your attention.
For example, here is a budget for a website redesign project:
- UI/UX Designer: $12,000
- Brand Consultant: $8,000
- Development phase: $45,000
- Frontend Developer: $25,000
- Backend Developer: $20,000
- Content and testing: $15,000
- Content Writer: $8,000
- QA testing: $7,000
- Revision Buffer (10%): $8,000
- Total project budget: $88,000 over 3 months
This detailed breakdown helps track spending at each stage and ensures you have enough buffer for unexpected changes.
How to create a business budget
No matter the size of your business, here are the basic steps to creating a business budget.
1. Collect financial data.
Before creating a business budget, gather insights from your past financial data. By looking at profit and loss statements, expense reports, and sales data, you can identify trends, learn from past experiences, and see where you can improve.
Going through your financial history will give you an accurate picture of your income and expenses. So when you create your budget, you can set achievable goals and ensure that your estimates align with what’s happening in your business.
In addition to past financial data, also consider new expenses. For example, if your company wants to try a new marketing channel, document your goals for that channel. Then, go back to figure out how much you need to achieve those goals and factor that amount into your budget.
Pro tip: I always keep my previous year’s financial data in a separate spreadsheet. This makes it easier to spot trends and helps prevent accidental overwrites.
2. Find a template or create a spreadsheet.
There are many free or paid budget templates online. You can start with an existing budget template. Below we list some helpful templates.
You can also choose to create a table with custom rows and columns based on your business.
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3. Enter the income.
Once you have your template, start listing all of your business’s sources of income. A budget plans for the future, so you need to forecast income streams based on previous months or years.
For a new small business budget, rely on your market research to estimate initial revenue for your business. When trying out new channels, consider using industry benchmarks to estimate expected revenue.
When you estimate your sales, figure out how much money you have to work with. This will help you decide where to allocate your resources and what expenses you can finance.
4. Subtract the fixed costs for the period.
Fixed costs are the recurring costs you incur every month, quarter or year. Examples include insurance, office space rental, website hosting and internet. Remember that fixed costs remain relatively stable regardless of changes in business activity. Even if your sales decrease or production decreases, these costs remain the same.
Keep in mind that fixed costs can change in the long term, for example when renegotiating rental agreements or adjusting employee salaries.
5. Consider variable costs.
Variable costs change from time to time. Unlike fixed costs, variable costs increase or decrease as production or sales levels change.
Examples include raw materials needed to produce your products, packaging and shipping costs, utility bills, advertising costs, office supplies, and new software or technology.
You may always have to pay some variable costs, such as: B. Electricity bills. However, if your estimated income is below average, you can allocate your spending amount to other expenses such as advertising costs.
6. Take time to plan your business budget.
There may be unexpected expenses or you may want to save to grow your business. Be sure to review your budget after considering all expenses, fixed costs and variable costs.
Once you’re done, determine how much money you can save. It is advisable to set up two or more savings accounts to avoid overspending. For example, use one for emergencies and the other to drive business growth.
7. Conduct budget reviews.
Every budget requires regular reviews. Regular reviews will help you know what’s working and allow you to respond to changes in your financial outlook.
When reviewing your budget, compare your estimated budget with your actual expenses. This will help you learn how to make better income and expense forecasts.
There is no rule as to when you should do your budget review. However, I recommend doing this monthly, quarterly and annually.
- Monthly Reviews: Compare your estimated expenses with your actual expenses. Look for items whose actual expenses exceed the estimated cost. Consider cost-cutting measures for such items when forecasting your expenses for the next month.
- Quarterly Reviews: Use this review to determine three months of monthly budget estimates and actual expenses. Use the insights to determine what you should spend less or more on and make better forecasts for the next quarter.
- Annual reviews: This review will help you assess your forecasts for the year. If they were correct, double it. If not, think about what didn’t work and use what you learned to make better long-term financial projections for next year.
How to manage a business budget
Intelligent budget management separates thriving companies from failing ones. The most successful companies employ three key strategies to stay financially healthy.
1. Set clear financial goals and boundaries.
Start by setting specific sales goals for each month, quarter, and year. Based on these goals, assign strict spending limits to each department.
Next, protect your business by setting aside emergency funds – most experts recommend three to six months of operating expenses.
Finally, create separate budgets to balance daily operations with long-term growth initiatives.
2. Track every dollar (daily or weekly).
Once your goals are set, make budget check-ins a part of your daily routine. When making these reviews, carefully compare actual spending with your projections.
To ensure accuracy, record every expense immediately—yes, even the $4 coffee expense. Better yet, use software to automatically record and categorize transactions to avoid unpleasant surprises at the end of the month.
3. Analyze and adjust monthly.
Review your monthly performance to identify patterns in income and expenses. If you find unnecessary expenses, cut them immediately. In the meantime, keep an eye out for ways to score better deals when you shop regularly. Then use these insights to adjust department budgets based on performance.
If you’re falling short of your budget, the most important thing is to make smart decisions about whether to save the extra money or reinvest it in growth opportunities.
Why is a budget important for a business?
A business budget is your financial roadmap and shows where you are and where you can go. Your budget prevents financial surprises by keeping track of every dollar coming in and going out. This clear visibility helps you identify and address cash flow issues before they harm your business.
With this financial clarity, you can turn gut decisions into data-driven decisions. For example, if you’re considering a new hire or a software upgrade, your budget will show when you can afford those investments—and when you should wait.
Most importantly, consistent budgeting creates long-term security. Planning your savings will help you have cash reserves for emergencies and opportunities, keeping your business resilient and ready for growth.
The best free business budget templates
After testing dozens of budget templates over the years, I have found these seven to be the most user-friendly and adaptable to different business needs.
1. Marketing budget template
Best for: Companies that run multiple initiatives across multiple marketing channels
Knowing how to manage a marketing budget can be challenging, but with helpful free templates like this one Marketing budget template packyou can track everything from ad spend to events and more.
I like this pack because it is comprehensive and includes eight free business budget templates. There are templates for:
- Branding and creative budget.
- Product marketing budget.
- Paid advertising budget.
- Public relations budget.
- Web design budget.
- Content budget.
- Event budget.
The master budget template pulls everything together and serves as your central source of information. It consolidates the various budgets into one comprehensive, company-wide budget sheet. When teams have a specific template for each initiative, they can track their spending and plan for growth.
2. Project budget template
Best for: Internal teams are looking for support for complex projects
Every new project involves costs. The Free business budget template helps your team calculate total costs once you enter your labor, materials and fixed costs. You can easily spot when you’re going over budget in the middle of a project so you can make adjustments accordingly.
This template is particularly useful for small businesses reporting budgets to their clients and for internal teams committed to complex projects.
3. Free business budget template
Best for: Companies of all types that carry out a minimal number of initiatives
Sometimes you may need to document a simple budget for some initiatives. In such cases this is Free business budget templatethat works in Google Sheets and Excel might be ideal. I like the idea of ​​Google Sheets because it allows others to collaborate and comment on the budget.
These business budget templates have cells for entering your expenses, category, and budget. The spreadsheet then uses the data to create your total estimated budget.
4. Content budget template
Best for: Content marketing teams and agencies manage multiple content types
This template will help you plan and track spending on your content marketing initiatives. From blog posts to videos, you know exactly where your content budget is going.
The template contains special sections for:
- Freelance Payments.
- Services (e.g. storage, archive photos, etc.).
- Publishing tools (e.g. HubSpot).
- Software (e.g. Basecampe and Indesign).
Breaking down content costs makes it easier to see which types of content deliver the best ROI and where you might be overspending.
5. Master marketing budget template
Best for: Marketing managers manage multiple campaigns and channels
This comprehensive template brings all your marketing spend into one view. It is perfect for companies that run multiple campaigns across different channels.
The Master Marketing Budget Template will help you:
- Track spending across all marketing initiatives.
- Compare channel performance.
- Adjust budgets based on ROI.
- Plan future marketing investments.
This holistic view of your marketing spend helps you make smarter decisions about budget allocation across all channels.
6. Paid advertising budget template
Best for: Digital marketers manage multiple advertising platforms
Keep track of your ad spend across Google Ads, social media and other platforms. This template will help you optimize your ad spend and improve ROI.
Key features include:
- Platform-specific budget tracking.
- Campaign performance metrics.
- ROI calculations.
- Monthly and quarterly comparisons.
These metrics will help you quickly identify which advertising platforms are worth your investment and which ones need adjustment.
7. Event budget template
Best for: Event planners and marketing teams organizing business events
Whether you’re planning a product launch or an industry conference, this template will help you manage all event costs.
It tracks costs for:
- Venue and facilities.
- Food and refreshments.
- Speaker fees.
- Marketing materials.
- Staff.
- Financial support.
- Miscellaneous items (e.g. name tags and gift bags).
It also includes a visual pie chart that shows how your money is divided, so you can easily see where your event budget is going and where you may need to make adjustments.
How to use a business budget template
By following these important steps, it’s easy to get started creating a business budget template.
1. Set up your template.
First, download your chosen template and take the time to understand its structure. You’ll notice sample data showing how the template works – this is your guide to proper data entry.
Remove these example illustrations, but be sure to retain the underlying formulas that make the template work. Most templates include multiple sheets or sections. Therefore, familiarize yourself with how they are linked before adding your data.
professional TIP: I always back up a template before removing sample data. This gives me a clean reference point if I need to check the original formulas later.
2. Enter your sources of income.
Start with your sources of income. First enter your main income, e.g. B. Product sales or service fees. Then add secondary income, such as: B. Affiliate income or advertising income.
Be conservative in your estimates – it’s better to slightly underestimate income than to overproject and under-project. Be sure to document any seasonal patterns or irregular income so you can plan accordingly.
3. Add your expenses.
Tackle your expenses methodically, starting with fixed costs like rent and salaries. These are the easiest to project because they rarely change.
Next, add the variable expenses, e.g. B. Material and marketing costs. However, pay particular attention to expenses that fluctuate seasonally. And don’t forget to include irregular expenses like annual software subscriptions or quarterly tax payments.
The more detailed you are here, the more accurate your budget will be.
4. Review and adjust monthly.
Monthly reviews ensure your budget is accurate and useful. So take time each month to compare your projected numbers with actual expenses and income.
Look for patterns and examine any significant deviations. Then use this information to refine forecasts for the next month. If you consistently overestimate or underestimate certain categories, adjust your future forecasts accordingly.
5. Use the analysis functions.
Most templates include built-in analytics that provide key insights about your business. Study the graphs and charts to understand output patterns and identify potential problems before they become serious.
Additionally, pay attention to trends in your cash flow and look for opportunities to reduce costs or increase efficiency. Use these visual tools to explain budget decisions to stakeholders or team members.
6. Keep recording.
Document everything as you go – small expenses add up quickly and can be easily forgotten. Create a simple system to store receipts and record transactions instantly.
If you spot any unusual expenses or windfalls, add notes explaining them. This context will be invaluable in future planning. Review your budget categories quarterly to ensure they continue to meet your business needs. Don’t hesitate to adapt them as your business model changes.
Create a business budget to help your business grow
Creating your first business budget is easier than you might think. Choose a template that fits your business needs, add your numbers, and you’re on your way to making better financial decisions.
The hardest part is getting started – and these business budget templates make it easy. Choose one and take the first step towards growing your business.
Editor’s Note: This post was originally published in September 2021 and has been updated for completeness.