Rework Your Budget

As your finances change, it’s important to adjust your budget. Whether you’ve just started a new business or have an established one, track your monthly expenses and make adjustments as necessary.

A budget is a tool to track when and how you earn or spend money. Creating a budget is an important pillar of your overall success and security. It allows you to oversee and better understand whether your business has enough revenue (incoming money) to pay its expenses. Using a budget can help you make more informed financial decisions.

For example, if you know how much money you earned and spent every week for the last several months, you’ll know how much you can afford to spend if you want to hire a new employee.

Budgeting is an ongoing process rather than a one-time exercise because your business revenue and expenses could change at any time. Revisit and rework your budget monthly, quarterly or after changes to your business occur, such as a big shift in expenses. This calculator will help you stay on track to achieve your goals.

Revenue

Net Sales (after tax)*

Total amount of gross sales with the removal of returns, allowances and discounts.

Interest Income

Earnings generated by investments, or income earned on an investment over a specific period of time.

Asset Sales

Selling the different assets that the business owns.

Retail Income

Income generated from retail sales.

Other Revenue*

Any other revenue streams not already listed.

Total Revenue:

The Total Revenue dollar amount will populate to the right after you fill in the form fields and click Calculate.

Fixed Expenses

Business expenses that typically stay the same from month to month.

Salaries and Benefits*

An amount of money or compensation paid to an employee by an employer in return for work performed.

Rent/Mortgage*

The total amount a business pays monthly to rent a property you do not own or pay a mortgage.

Cost of Goods*

The cost of your inventory (goods) calculated by adding the opening inventory to the purchases at cost, minus the closing inventory at cost.

Accounting and Legal*

Costs associated with paying accountants and attorneys.

Insurance*

Costs for property, liability, business vehicle and workers compensation insurance.

Licenses and Permits

License tax (for your business license, city license, or other) and permits required to run your business.

Debt Payments

Payments for small business loans, lines of credit and credit cards.

Telephone

Total costs for your business landline and cell phone.

Transportation

Costs of maintaining a car used for business, or transport by rail, air, bus or taxi.

Equipment

Machines and tools required to produce your product.

Office Supplies

Can include electronic equipment, such as a computer, printer or fax machine, and other supplies like printer ink and paper.

Memberships and Subscriptions

Costs for dues to professional organizations, and those organizations or subscriptions which you can show are necessary to conduct your business.

Taxes

The state and federal taxes you pay can depend on your line of business, the type of business you create, the tax designation you choose and where your business is based.

Other Fixed Expenses*

Any additional fixed expenses required to run your business.

Flexible Expenses

Business expenses that differ from month to month.

Utilities

Total amount paid for services such as power, water and sanitation.

Maintenance and Repairs

Costs for fixing and keeping machinery and equipment in working order. Repairs could include fixing office equipment like a copier.

Shipping and Storage

Costs for storage, shipping and handling of your inventory.

Marketing and Promotional Costs

Costs for storage, shipping and handling of your inventory.

Other Flexible Expenses

Add additional flexible expenses.

Total Expenses:

* Indicates a required field

Results

Total Revenue

Total Expenses

Bottom Line

Understanding Your Results

Before exploring this calculator familiarize yourself with some of the terms and definitions that are used in this financial tool.

Budget: A budget is a financial plan used to track the income and expenses of a business.

Business costs or expenses: Business costs, also called business expenses, are all the costs associated with running a business. These could include fixed expenses, which stay the same from month to month, such as rent, salaries and insurance. Many businesses also have flexible expenses, which change from month to month, such as payroll or supplies.

Expenses: Money that a business spends. Many businesses have a variety of one-time expenses, such as purchasing equipment, and ongoing expenses, like utility payments or rent.

Income: Also called net profit, or sometimes simply profit, this is the total amount of money a business earns after paying all its expenses.

Insurance: Business insurance can help protect a business against a financial loss. In exchange for making regular insurance premium payments, the insurance company will pay the business during a covered incident. For example, some types of business insurance might help a business rebuild a store after a flood, cover the cost of the damaged products and pay for the lost income while the business is closed.

Inventory: The amount of products a business has in its stores and warehouses. This may include finished goods, work in progress and raw materials. Keeping track of stock levels is an important way to manage costs, keep a business running smoothly and detect theft.

Revenue: Revenue is the amount of money that a company earns during a specific period. It is the gross income/profit figure from which costs are subtracted to determine net income. You can calculate revenue by multiplying the price at which goods or services are sold by the amount sold. Revenue is also known as sales on an income statement.

Note: This site provides general information related to creating and running a business. The content of this site is for informational purposes only and not for the purpose of providing legal or tax advice or opinions. The contents of this site, and the viewing of the information on this site, should not be construed as, and should not be relied upon for, legal or tax advice in any particular circumstance or fact situation. No action should be taken in reliance on the information contained on this site, and Visa Inc. disclaims all liability in respect to actions taken or not taken based on any or all of the contents of this site to the fullest extent permitted by law. You should contact an attorney to obtain advice with respect to any particular legal or tax issue or problem, including those relating to your current or potential business

Disclaimer: No Legal Advice Intended
This site provides general information related to creating and running a business. The content of this site is for informational purposes only and not for the purpose of providing legal or tax advice or opinions. The contents of this site, and the viewing of the information on this site, should not be construed as, and should not be relied upon for, legal, financial or tax advice in any particular circumstance or fact situation. No action should be taken in reliance on the information contained on this site, and Visa Inc. disclaims all liability in respect to actions taken or not taken based on any or all of the contents of this site to the fullest extent permitted by law. You should contact an attorney to obtain advice with respect to any particular legal or tax issue or problem, including those relating to your current or potential business.

The contents of this site have been developed for a U.S. audience.