Template

SME Budget Planning Template

A simple budget plan structure with clear categories and review points — so money decisions don't happen in a spreadsheet void.

Summary

A useful SME budget has: revenue forecast, fixed costs, variable costs, cash buffer, and review cadence. More sophistication can wait.

Template sections

Revenue forecast

Recurring / predictable
New business (pipeline × confidence)
One-offs
Total by month

Fixed costs (monthly)

Salaries + benefits
Rent / office
Software subscriptions
Insurance
Accounting / legal

Variable costs

COGS (linked to revenue)
Marketing spend (monthly cap)
Project-specific costs
Travel / events

Cash buffer

Months of runway target (3-6 min for SMEs)
Current cash on hand
Months of runway actual

Review rhythm

Monthly close: actuals vs budget
Quarterly: reforecast if > 10% off plan
Annually: full planning cycle in Oct-Nov for next year

Variance analysis

Red flag: actual vs budget variance > 15% in any line for 2+ months. Action: explain the variance, then decide to absorb, adjust, or change behaviour.

Common mistakes

Optimistic revenue forecast with no contingency
Missing fixed costs (accounting, insurance creep)
No cash buffer target
Budget built in January, never updated

Frequently asked questions

Budget at revenue or profit level?

Both. Top-line revenue sets growth expectations; profit line confirms viability.

Next step

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