Term Business Loan

Things You Should Account for in Your Budget

Plane Race

Income and Expenses You Should Account For In Your Budget

From drafting a new one to conducting a daily review that first year or executing quarterly reports, no matter where you are in the business budgeting process, there are income and expenses that must be considered without taking for granted. Making time to consider and check off the ones that do not apply to your business can lead to a more accurate financial picture of it. Lack of funds for unplanned expenses overlooked in the budget planning process can quickly wreck an otherwise good business plan. Start here with a budget checkup.

Fixed or Variable, Recurring or Periodic?

Before looking at specific items in the budget, it is important to note whether each one is fixed or variable and recurring or periodic. Recurring expenses like rent and vehicle payments are fixed expenses because they do not change from month to month. Variable expenses may change from one month to another, such as utility bills and advertising. Periodic expenses are those that do not occur monthly, such as taxes, liability insurance and license renewals. These often overlooked expenses can be quite inconvenient when due, so scrutinize your plan now to anticipate as many as you can.


  • Monthly Sales – Cash, checks, credit card, in-kind
  • Interest – Checking and savings accounts, financed sales
  • Investments – Certificates of Deposit, Bonds, Stocks, Mutual Funds
  • Fixed Expenses
  • Rent or mortgage
  • Personnel – Permanent payroll, withholding taxes, health insurance, holiday, vacation and sick pay
  • Insurance – Property, casualty, professional liability, worker’s compensation, automobile, health, loss of income
  • Licenses – City, county, state, country, professional certifications
  • Equipment – Leases, planned maintenance, office and restroom supplies
  • Dues – Union, trade and civic organizations, business organizations like Better Business Bureaus and Chambers of Commerce
  • Miscellaneous – Interest payments, installment loans and interest, services you cannot do yourself
  • Variable Expenses
  • Utilities – Electric, gas, water, telephone, cellular phones, internet provider, cable, routine postage
  • Personnel – Bonuses, temporary payroll, training, recruiting and hiring
  • Advertising – Print, radio, television, internet, telephone, trade shows, seminars, printing and postage, job listings
  • Repairs – Facilities, Vehicle, Equipment
  • Travel – Vehicle fuel, airline tickets, lodging, car rentals, taxi, food
  • Credit – Revolving charge cards, store or service provider credit accounts
  • Interest – Credit purchases
  • Charitable Contributions – cash, credit, donations in kind
  • Miscellaneous

Asset or Liability?

Assets are anything you own outright and that is owed to you. This includes property, investments, accounts receivable, and equipment like vehicles, computers, or furnishings. Liabilities are anything you owe. This includes accounts payable, installment and revolving credit loans. You will need this information for many reasons especially filing taxes, getting lines of credit or a loan.

Funding Sources

There are times a business needs to borrow funds to effectively manage temporary shortfalls or to expand during strong growth periods. Small to medium sized businesses of any credit history can find it hard to locate sources, but reputable companies like Advance Funds Network offer many programs of unsecured funds without any upfront fees. They can locate the best funding for your needs and arrange a convenient repayment plan.

How To Finish First

Unlike managing personal finances, no business expense should be considered too insignificant or “understood.” Consult with a Small Business Administration representative or other accounting professional for more comprehensive assistance preparing your business budget. Plan for every possible related expense to keep your business on a healthy budget that will help it thrive and grow. Get financial assistance from a solid, reputable company when you need it.

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