A simple monthly budget for your small business

1. Set your starting point

This budget follows cash when it moves. If a customer receives your invoice this month but pays next month, put the receipt in next month’s budget.

1. Open a blank sheet in Google Sheets or Microsoft Excel and name it for the month.
2. Add up the business bank balance and cash on hand at the start of that month. Keep personal funds separate.
3. Gather bank transactions, cash records and upcoming payment dates.
4. Choose one currency for the whole sheet. Replace AZN in the template if needed.

2. Paste your budget template

Copy the entire block below into cell A1. It uses tabs to separate columns. If everything lands in one column, use the spreadsheet’s split-text feature and select a tab separator. Keep the row order so the formulas work.

Item Planned (AZN) Actual (AZN) Opening cash balance 0 0 Customer payments received 0 0 Other cash received 0 0 Total cash received =B3+B4 =C3+C4 Rent and utilities 0 0 Stock and materials purchased 0 0 Payroll and contractor payments 0 0 Advertising and software subscriptions 0 0 Taxes and other required payments 0 0 Other cash paid out 0 0 Total cash paid out =B6+B7+B8+B9+B10+B11 =C6+C7+C8+C9+C10+C11 Net cash movement =B5-B12 =C5-C12 Closing cash balance =B2+B13 =C2+C13

• Fill in Planned before the month starts. Enter the same opening balance in both columns.
• Use positive numbers for receipts and payments. The formulas subtract payments for you.
• Update Actual only after money changes hands. An unpaid invoice is not cash received.
• Put loans and owner contributions under Other cash received. Record owner withdrawals under Other cash paid out. Keep a note explaining each amount.
• Enter tax payments using your records or an amount confirmed by your accountant. This sheet does not calculate tax.
• Keep formulas in the total and balance cells. Google Sheets and Excel calculate what you enter, but this template does not import bank transactions automatically.

3. Turn the numbers into a weekly decision

1. Choose a weekly review day. Update Actual with totals from the start of the month, rather than just that week’s transactions.
2. Find expenses above plan and add a short note explaining why. Pick one adjustment you can make this week.
3. Compare the actual closing balance with the cash currently in your bank account and till. Investigate missing or duplicate entries.
4. Check payments due in the next seven days. A healthy month-end forecast can still hide a shortage before a large customer pays.
5. At month end, duplicate the sheet. Carry the actual closing balance into the new opening balance and clear the other input amounts.

Try this illustrative check: a freelance studio starts with 500, receives 2,000 and pays out 1,700. Its closing cash should be 800. If a supplier payment of 700 is due soon, account for that commitment before approving a new purchase.

Go further with the AI Builders community

For real examples, peer feedback and discussion, visit the Azerbaijani AI Builders community’s resource page at https://abcommunity.org/resurslar. Share a version of your finished sheet with sensitive figures replaced by sample amounts. Ask which missing expense or unclear category others would flag.