It’s December, and if your business doesn’t yet have a budget for the upcoming year, you’re not alone. Many small business owners either delay the budgeting process or skip it altogether, relying on gut instinct and last year’s numbers to guide them forward.

But here’s the truth: it’s never too late to build a budget. Even if it’s already the holiday season, creating a financial roadmap now can help you start January with clarity, confidence, and control.

At Behney Management Strategies, we help business owners design budgets that reflect their goals, resources, and realities. If you’ve never built one before, here’s a straightforward way to get started plus where to go next if you’re ready to take it to the next level.

Why Bother with a Budget This Late in the Year?

Skipping the budgeting process may seem harmless, especially if your business has been profitable. But without a plan in place, you’re more likely to:

• Overspend in areas that don’t drive growth
• Underinvest in the resources your team needs
• Miss early warning signs of financial trouble
• Make reactionary decisions instead of proactive ones

Even a basic budget provides a framework for smarter decision-making—and you can build that framework in a matter of days, not weeks.

Step 1: Start with Last Year’s Numbers

If you’ve been in business for more than a year, your prior-year financials are the best place to begin. Pull a profit and loss (P&L) report and review:

• Total revenue by month
• Cost of goods sold
• Operating expenses (rent, payroll, software, insurance, etc.)
• One-time or irregular items (equipment purchases, tax payments)

This exercise gives you a foundation and helps identify trends or unusual spikes.

Step 2: Forecast Revenue

Break down your expected income for next year by month or quarter. Use realistic assumptions based on:

• Current client contracts or recurring revenue
• Seasonality in your industry
• Planned new offerings or marketing efforts
• Historical growth rates

You don’t need to predict every dollar—just get close enough to set expectations.

Step 3: Estimate Fixed and Variable Expenses

List all ongoing expenses you know will happen (rent, salaries, software subscriptions) as fixed costs. Then, project variable costs (marketing, materials, travel) based on your revenue goals.

If you’re not sure where to start, scan last year’s bank and credit card statements for recurring charges. Group expenses into categories so you can analyze trends and make informed decisions.

Step 4: Factor in One-Time Investments

Do you plan to hire a new team member, purchase equipment, or launch a new service? Budget for these large items separately from your recurring monthly costs to avoid surprises mid-year.

Step 5: Build in Cash Flow Considerations

A budget isn’t just about profitability—it’s also about timing. Look at when income is expected to hit the account and when payments are due. Planning for cash flow gaps in advance helps prevent short-term crunches, even if you’re profitable on paper.

Step 6: Monitor, Adjust, and Use It

A budget isn’t set in stone. It should be reviewed regularly and updated as new information comes in. The more often you use it as a decision-making tool, the more valuable it becomes.

Start by committing to a monthly review where you compare actual results to budgeted expectations. This will help you adjust course early and make better financial decisions all year long.

Ready to Take it Further?

If you’re comfortable with the basics but want help creating a more advanced budget which includes:

• Departmental or project-based budgeting
• Strategic hiring plans
• Profitability modeling
• Key performance indicators (KPIs)
• Rolling 12-month forecasts

Then, it’s time to go deeper. Our team at Behney Management Strategies offers fractional CFO services to help you turn your budget into a strategic growth tool—not just a spreadsheet.

Final Thoughts

You don’t need to wait for the “perfect” moment to start budgeting. Whether it’s January 1 or December 20, a basic financial plan is better than none—and it’s never too late to get started.

Let this be the year you move from reactive to proactive with your business finances.

Behney Management Strategies – Small Business, Big Goals.

WRITTEN BY

David Behney, Founder & CEO

David Behney is the Founder and CEO of Behney Management Strategies, where he helps small businesses achieve their big goals through expert C-suite consulting. With a background in fractional CFO services, David now provides strategic guidance across finance, operations, marketing, and technology to businesses with $1M–$30M in revenue. Passionate about driving growth and sustainability, he partners with business leaders to build strong foundations and navigate challenges. Connect with David to take your business to the next level.