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An annual budget that helps you run the business, not just report on it
A budget is a plan written in numbers. Built from the bottom up, and reviewed every month, it turns ambitions into targets the whole team understands.
Many small businesses budget by adding 5% to last year. It is quick, but it does not help anyone make a decision. A useful budget starts with what will actually happen: how many customers, at what prices, served by how many people.
Building it
- SalesVolume and price by product or service, by month.
- Direct costsMaterials, subcontractors and the staff who deliver the work.
- OverheadsPremises, systems, insurance, salaries, marketing, line by line.
- CashTurn the profit plan into a cash plan, with VAT, tax and loan payments.
Using it
Each month, compare actual with budget and write one sentence on each big difference. Each quarter, update the forecast for the rest of the year but keep the original budget, so you can see how your view has changed.
For the year ahead
- National Living Wage of £13.21 from April 2027, and employer National Insurance at 15%.
- Business rates changes for retail, hospitality and leisure from April 2027.
- Higher tax on property and savings income from April 2027, for owners’ own planning.
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This insight is general information, not advice for your circumstances. Talk to us before acting on it.