6 Questions to Help You Develop Your Small Business Budget

Stewarding the vision God has given you through the vehicle of your business is no small task.

Between managing clients, producing goods or services, and handling daily operations, it’s easy for long-term, seemingly non-urgent financial planning to fall to the bottom of the to-do list. 

Whether you’re running a solo venture or leading a small team, one of the most powerful tools you can use to stay focused and faithful is a clear, working budget. If just the thought of identifying your business’s cash flow, Profit & Loss (P&L) statements, or figuring out business taxes feels overwhelming–know that building a thriving, sustainable small business is not something God intended for you to go at alone. 

In this guide, we’ll walk you through 6 key questions that can help bring clarity to your business finances. From tracking income to preparing for growth, these questions can help you build a budget that reflects both your vision and your values.

A Budget Is More Than Math—It’s Ministry

At KCN, we recently sat down with board member and small business owner Alysia Friday to hear her reflections on budgeting—not just as a financial practice, but as a form of faithful stewardship.

Alysia reminded us: a budget isn’t just a spreadsheet of numbers—it’s a roadmap for your business. It can reveal opportunities for growth, highlight unnecessary expenses, and give you a clearer path toward your long-term goals.

“If you wouldn’t take a road trip without planning where to stop for fuel, you shouldn’t run your business without a clear budget.” - Alysia Friday

So if you’re wondering where to start, or how to get back on track—start here.

Here’s Your Roadmap To Building a Budget That Works

Whether you’re in year one or year ten, a budget is a tool for developing clarity, confidence, and growth in your business. Below are six essential questions to guide your thinking and help shape a budget that both serves your business today and sets it up well for the future.

1. Track: Where is your money coming from?

   First, get a full picture of every dollar coming in. List all of your income streams: POS sales, client payments, and online platforms like CashApp or Venmo. And don’t forget: if you’ve received a loan, that’s not “income.” It’s borrowed money, and your budget should reflect repayment plans.

   
   

2. Identify: How much does it cost to sustain operations and salaries?

   Now, look at your expenses. What are the bare essentials to keep your business running? Name the non-negotiables: rent, payroll, supplies, shipping, any monthly loan repayments, and software should all be included. If you're paying yourself (and we hope you are!), your salary is part of the budget too. Treat it like any other non-negotiable line item.

   
   

3. Prepare: Do I have emergency business savings?

   Surprises happen in business. A broken piece of equipment, an unexpected vendor delay, or a canceled contract can throw off your whole month. Start by evaluating what you need to set aside for possible repair costs of equipment and any other back-up expenses your business might need.

   
   

4. Allocate: Are taxes properly factored into your budget?

   Whether you pay your sales taxes quarterly or annually, it's important to set funds for tax payments aside in your budget since it will be paid to your local government at some point. Otherwise, your actual “available cash” as reflected in your budget may be over-inflated and less “available” than you thought.

5. Compare: Who am I buying from—and am I getting the best price?

   Vendors and suppliers influence everything in business from your markup to profit margin. Shop around and compare rates. Alysia encouraged us: “Don’t just go with who’s nice—go with who helps you stay sharp.”

6. Evaluate: Do my finances align with my business goals?

   A strong budget isn’t just about surviving—it’s about planning for the future. Whether you want to grow your team, open a second location, or upgrade your equipment, your budget should help you move toward that vision. Review your numbers monthly and ask: Are we building toward what God has called us to do with this business?

   
   

Examples of What This Can Look Like

To help you visualize the difference a good budget makes, we have two simple examples below: one that clearly tracks income and expenses, and another that misses vital points of information.

Use these examples to reflect on where your current process falls—and where you might need to sharpen your tools.

🔍 Example 1: Helpful Small Business Budget

An example of a thorough, helpful business budget

✅ Why this budget works:

• Separates income vs. expenses

• Compares budgeted vs. actual

• Includes notes for clarity

• Plans for surplus, taxes, and growth

• Uses bookkeeping support to stay on track

⚠️ Example 2: Unhelpful Small Business Budget

An example of an unhelpful business budget

🔻 Why this doesn’t work:

• Income and expenses are lumped together with no clear categories

• No distinction between personal and business spending

• No notes or actual tracking of what was spent vs. expected

• No planning for taxes, savings, or owner pay

• “Profit” is a guess, not based on clear numbers

Bonus Tip: Use a Profit & Loss (P&L) Sheet

In addition to tracking your income, expenses, actual costs, etc through your budget, it is also worth putting together a Profit & Loss (P&L) sheet. P&L sheets are also a common requirement for applying for working capital business loans.

“Your income or P&L statement shows how much profit your business has made, or how much you’ve lost. It’s useful to have on hand as you create your business budget because it serves as your baseline. See below for an example.” - Capterra Business

An illustrative example of a simplified P&L income statement (Source)

Should I Hire Help With My Finances?

Let’s be honest: at some point, DIY budgeting might not be enough.

Hiring a CPA or bookkeeper may feel like a luxury, but according to Alysia, it’s been one of the best investments she’s ever made in her business.

And if hiring someone full-time isn’t feasible right now, our community partner EGBI offers bookkeeping, coaching, and financial support services to help small business owners get organized and stay compliant.

At Kingdom Capital Network, we know that no one was designed to build a small business in isolation. That’s why we created our Formation Cohort as a space to give Christian small business owners the community, business development and mentorship, and capital they need to grow well.

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In a nutshell:

📍Start here: Answer the 6 Questions.

📍Find a guide: Book a session with EGBI to find a bookkeeper and/or CPA, and join a KCN Cohort to dive more into exploring your budget roadmap in community.

📍Embrace confidence! Trust that creating your business budget is doable, and essential, in stewarding your business well. You started your business and have everything needed to create a sustainable budget. You’ve got this!