How to Budget for Your Small Business in the New Year

Dec 1

The start of a new year is the perfect time to set goals, plan ahead, and put a clear budget in place for your business. Whether you’re looking to grow, stay steady, or tighten things up, a solid budget is your roadmap for financial success.

Here’s how to create a realistic and useful business budget — without the overwhelm.

1. Look Back Before You Look Forward

Start by reviewing your financials from the past year:

Total income and expenses
Big-ticket items or unexpected costs
Seasonal patterns in sales or spending

This helps you identify what worked, where money may have been wasted, and what to expect going forward.

2. Set Revenue Goals

Decide what you realistically expect to bring in this year:

Base it on past performance.
Adjust for planned changes like price increases, new products/services, or expanded marketing.

✅ Don’t just guess — look at the data!

3. Plan for Fixed and Variable Expenses

Fixed expenses: Rent, insurance, software subscriptions, loan payments.
Variable expenses: Marketing, travel, supplies, contract labor.

Building in some cushion for unexpected costs can save you stress later.

4. Don’t Forget Taxes and Savings

Set aside a percentage of your income for:

Quarterly estimated taxes
Emergency fund or business savings
Future growth investments (like equipment upgrades or hiring)

5. Use Your Budget as a Tool (Not Just a Document)

Check your budget monthly or quarterly against your actual numbers:

Adjust for changes in sales or expenses.
Use it to guide your spending and decision-making all year long.

Wrapping It Up

A budget isn’t about restriction — it’s about giving yourself a plan and peace of mind. The better you plan, the easier it is to stay on track and hit your business goals.

Need help reviewing your numbers and building a smart budget for the new year? Wrap Up Bookkeeping can help you create a plan that supports your business growth. Contact us today!

Matthew Folaron