If you run a small business, the question you ask most often is simple: are we actually making money this month? A good budget spreadsheet answers that in a minute. A bad one gives you forty tabs and no answer.

This guide covers what a small business budget spreadsheet needs to track, how to set one up in Excel or Google Sheets, and a ready-made template if you would rather start today.

What a small business budget spreadsheet should track

• Income by source. Every sale or payment, tagged by where it came from, so you can see which product, service or client carries the business.
• Expenses by category. Software, supplies, contractors, marketing, fees. Categories turn a long list of payments into something you can act on.
• Budget vs actual. A planned amount for each category next to what you really spent. The gap is where decisions come from.
• Profit and loss. Income minus expenses, month by month. This is the number a lender, an accountant or a partner will ask for first.
• Cash flow. What came in and what went out each month, so a profitable month on paper does not surprise you with an empty account.

How to set one up in 5 steps

1. List your expense categories. Keep it to 8 to 12. More than that and nobody maintains it.
2. Set a monthly budget for each category. Use the last three months of statements as your starting point.
3. Log income and expenses as they happen. Date, amount, category, note. Ten minutes a week is enough.
4. Review budget vs actual at month-end. Look at the three biggest gaps only.
5. Check profit and cash flow. Decide one thing to change next month.

Excel or Google Sheets?

Both work. Choose Google Sheets if you want to open the file on your phone or share it with a bookkeeper. Choose Excel if you work offline or already keep your books there. The best template is one that works in both, so you are not locked in.

A ready-made option: Small Business Budget & Profit Tracker

We built the Small Business Budget & Profit Tracker for exactly this job. It covers income and expense tracking, budget vs actual, profit and loss, and cash flow, and it works in both Excel and Google Sheets. It comes with a setup guide PDF and a setup video, and costs $8.99.

Get the Small Business Budget & Profit Tracker ($8.99)

Related tools

• Freelancing rather than running a team? The Freelancer Finance Kit covers clients, hours, invoices, tax set-aside and rates in Excel and Google Sheets.
• Prefer to keep finances next to your projects in Notion? See the Finance Tracker for Business.

FAQ

What is the best budget spreadsheet for a small business?

The one you will keep up to date. Look for income and expense logs, budget vs actual, a profit and loss view and cash flow, without extra tabs you will never open.

Can I use a budget spreadsheet instead of accounting software?

For planning and month-to-month visibility, yes. For tax filing and formal accounts, check with your accountant about what your business is required to keep.

How often should I update my business budget?

Log transactions weekly and review budget vs actual once a month. Revisit the budget itself each quarter.

Does the template work in Google Sheets?

Yes. The Small Business Budget & Profit Tracker works in both Excel and Google Sheets.