Creating a small business budget

Anna Stubbs • July 8, 2024

Small business budgets are empowering. They give you the knowledge and insight to eliminate wasteful spending and get to profitability faster.

When setting a business budget, you need good numbers. Don’t guess at what’s coming in and what’s going out. You could be making assumptions that just aren’t true.


Take the time to look into your accounts and dig out the real figures. It might sound like hard work but it’s worth it.


A forward-looking budget will tell you how much you:

  • spend running the business
  • can invest to improve the business
  • can pay yourself (and any shareholders)
  • could save in certain areas.


The following article by Xero gives you an overview of the numbers you need to be clear on when creating a budget. Read more here.


Setting a budget isn’t complicated but it can still help to involve an expert. We can double-check the numbers and help you make realistic predictions about business growth, upcoming expenses, and tax exposure. We'll also advise you on what to do if the actual numbers deviate from the predicted ones.


Get in touch, we are here to help.

Understanding revenue and the true nature of profitability

By Anna Stubbs • July 15, 2026
Healthy sales revenue numbers don't always mean your small business is profitable. It's easy to mistake rising sales and income for profitability. But unless you understand your operational costs, profit margins and net profit, you won't truly know whether the business is making long-term, sustainable profit.

Tax planning helps you do more with your money

By Anna Stubbs • July 15, 2026
Tax planning is a strategic approach to managing your business’ financial affairs, with the aim of legally minimising your tax liability. In other words, you plan ahead to make sure you pay the taxes you should be paying, but not a penny more. Working with your tax adviser, you can look for deductions, credits, exemptions and tax-saving strategies that will help to optimise your company’s overall tax position.

Is your small business up to date with employment law?

By Anna Stubbs • July 15, 2026
“Just 20% of SMEs identify regulatory compliance as an organisational priority, compared with almost a third of larger firms (32%). With little or no HR support and limited guidance, small businesses often lack awareness of employment law and may struggle to comply with the changes.” CIPD Labour Market Outlook, May 2026  The recent Labour Market Outlook report from the Chartered Institute of Personnel and Development (CIPD) shows that some small and medium-sized enterprises (SMEs) have a poor awareness of employment law and are not prioritising their regulatory duty as employers. But with the Employment Rights Act 2025 introducing several recent changes to UK employment law, it’s vital that your SME is aware of current employment law and your regulatory requirements as an employer. Five recent changes to employment law that came into force from April 2026.