How to create a budget for a small business

Myth: Budgets are complicated

Truth: A budget is just a plan for your money. It doesn’t need to be perfect, packed with jargon, or take hours to make. In fact, building a budget is as easy as these five things.

‍

Step one — understand your starting point

Look at your revenue, expenses, and cash flow. Think of your budget as the road map for where your business is headed, and your cash flow forecast as the GPS that shows what’s happening along the way.

Factors to consider:

• Industry norms
  
  
• Business stage
  
  
• Seasonality
  
  
• Access to funding
  
  

Step two — list your income and expenses

In essence, who’s paying you and who you’re paying.

• Income: sales, services, grants, loans
  
  
• Expenses: salaries, rent, supplies, marketing
  
  
• Break down expenses into:
  
  
  
  • Fixed expenses: stay the same (e.g., rent)
    
    
  • Variable expenses: change month to month (e.g., utilities, materials)
    
    

Note: In today’s economy, even “fixed” costs can shift. It’s smart to build in a little flexibility.

‍

Step three — set goals and build your budget

Decide what you want your budget to help you do: stability, growth, or saving for a buffer.

• Create realistic revenue targets.
  
  
• Align spending with what drives value.
  
  
• Don’t aim for perfection — aim for a budget you’ll actually use.
  
  

Step four — monitor, review, and adjust

A budget isn’t a “set it and forget it” tool. It’s a living document.

• Compare actual numbers against your budget monthly.
  
  
• Look for gaps or opportunities.
  
  
• Update your budget as conditions change.
  
  

Step five — make it easier with Huumans

With the Huumans Financial Dashboard, you can:

• Connect your accounts and build a budget in minutes.
  
  
• See a real-time view of your numbers.
  
  
• Ask Roy, your AI co-pilot, your budgeting questions in plain English.
  
  

Less time in spreadsheets, more time running your business.

‍

Conclusion — your budget is your business safety net

A budget shows where money should go. A cash flow forecast shows when it moves. Together, they give you clarity and control. Even a simple budget is better than none.

CTA: Build your budget today with the Huumans dashboard — and spend less time worrying about money, more time growing your business.

‍