This post is part of February’s Getting Down to Business series! See all content in this series.
Jason, a.k.a. JJMFinance, a certified public accountant and certified treasury professional, has a passion for finances and teaching. He performs left-brain number-crunching analytics while also feeling like a right-brain handmade artist. His wife has been selling on Etsy since 2007, and he helps with bookkeeping, taxes and the legal side of her business. He built her a bookkeeping system and figured, “If my wife can use this, I’m sure other Etsy sellers could too!” Jason is here to show us how to create a financial plan for your small business.
A budget is an itemized estimate of revenues and expenses for a set period of time. A budget allows you to get a “financial glimpse into the future” of how your business might perform.
I typically suggest business owners look out 12 months into the future. A year out is easier to imagine than 50 years out, but it stretches your imagination a little (more so than only looking out one month).
Since a budget is just a very good educated guess at best, I suggest you only make predictions in very high level categories (sales revenue, raw material costs, listing fees, administration costs, and other expenses). Now is not the time to break out your expenses into fifty different detailed categories!
The benefits of budgeting include:
- Planning — A budget provides a vision of where you want your business to be in the future. Use this to create non-financial strategies to reach your financial targets.
- Adjusting — A budget will never be absolutely correct. Use it to adjust throughout the year. If your recent results don’t match up with what you wanted them to be, start making different business decisions to reach your plan.
- Motivating — When you see those sale numbers that are a challenge, use it as motivation to improve your business.
All budgets have assumptions, meaning you have to take some things for granted. Assumptions should be based on your best guess – don’t go for perfection. There is no single correct growth rate.
So now that you have learned about budgeting, let’s do it!
- Download this 12 Month Budgeting Spreadsheet by JJMFinance.
- Enter your assumptions in the yellow shaded cells.
- Your 12 month budget will automatically populate and graphs will be created.
- If you don’t like the way the 12 month budget looks, play with the assumptions until it creates something you think is more appropriate. (The growth rates are the science behind your forecast, but the art is finding the growth rates that “feel right”).
- Use this budget to plan, adjust, and motivate yourself to financial success!
Planning helps you deal with the uncertainties surrounding your business – allowing you to see how your business might look under various circumstances. I hope this process has allowed you to understand the finances of your business from a different perspective.
1 Featured Comment
Sign in to add your ownJean from 183NorthWorkshop says: Featured
Thank you for your generosity in preparing and sharing this with the community. I am a former CFO (now my "other" job is part time bookkeeping), and I think this is an excellent budgeting spreadsheet.....not overly complex, and very user friendly. I found it is much easier to look at someone else's business objectively. When your own business involves impulse fabric and raw material "buys" for new creations you just must make, it's not as easy to stay on budget. Thanks again.
91 days ago
126 comments
Sign in to add your ownJason Helping Your Etsy shop thrive from JJMFinance says:
I hope everyone enjoys the spreadsheet! Feel free to send me a convo with any specific tax, bookkeeping, legal, or finance related business question you might have. Regards, Jason (JJMFinance)
92 days ago
Jess from volkerwandering says:
Very helpful information! Thank you!
92 days ago
MerCurios from MerCurios says:
Jason I so needed this right now, thank you. I download the spread sheet and plan to get cracking on it this evening after my son is off to sleep. I never thought I would live "paycheck-to-paycheck" but that is exactly what I'm doing running my own business. I contribute to the household expenses and groceries is the biggest - I shop every day for fresh ingredients based on what I feel like cooking. Yesterday alone I spent $44 on dinner - I made an awesome vegetable lasagna & it was good! I also buy supplies whenever the whim strikes. Being that I work with raw stones and crystals if I'm drawn to something, I buy it. Living like this isn't allowing me to build up the positive cash flow even though my business is booming. I'll be sure to email with any questions. xo, MJ
92 days ago
MerCurios from MerCurios says:
Thank you Jason I need this spread sheet right now. I find that I overspend and am not allowing the positive cash flow to build up even thought business is on fire. Contributing to the household is one factor and buying supplies on a whim is another. Being that I work with raw stones and crystals I buy things I'm drawn to. A budget - one that I can stick to with an unpredictable income - can only make my life easier, thank you.
92 days ago
Alexis from wortsandcunning says:
Thanks for sharing such a great resource! Your spreadsheet is well-designed and easy to use. Again, thanks! All the best, Alexis
92 days ago
Carrie from AlphabetCityStudio says:
Neat! I'm such a stickler for Excel spreadsheets and calculations. I love how we can play with/adjust the numbers and see projections for the next 12 months. THANKS so much!
92 days ago
VaLon from thevicagirl says:
I love it. I am a huge fan of budgeting, it is the only way to run a business. I am also a fan of the simple spreadsheet, no complex programs, just a spreadsheet.
92 days ago
Kimberly Morgan from AkimaBotanicals says:
Thank you for this great download! I'm starting out my business new and this will certainly help me mold and attain goals!
92 days ago
Krista from TheBeadtriss says:
Thanks for posting this...~KK~
92 days ago
Susan and Kate from ThisCharmingCandy says:
Thank you! We're looking forward to checking this out. Excel rules!
92 days ago
CM from SPUNKbyCM says:
Thank you for this insightful article! Very helpful indeed ^_^
92 days ago
wileyvalentine from wileyvalentine says:
Such a great article full of useful information! Thanks for including our calendar at the top!!
92 days ago
Mickey Fielding from TerraformaStudio says:
Thanks you for such a vital and practical business tool, Jason!
92 days ago
adam-david vaught from BlackConfederacy says:
Jason,this is awesome! Thank you!
92 days ago
Kathy from tapestry316 says:
Thanks, Jason! Great advice and very helpful.
92 days ago
Cyndi-lou from BlueMonsoonStudios says:
Oh, this is what I need! Thank you so much for the download - awesome.
92 days ago
Eva Pohl from LongnosedYarn says:
Awesome! Thanks so much!
92 days ago
Kristian McIntyre from CreativeArtandSoul says:
Thank you so much for taking the time to share this with us! I always find your advice so helpful. I'm a financing/bookkeeping/organizing/budgeting procrastinator. I do alright when I get down to it...but I always need a push to keep up with things! This planning spreadsheet will help out tremendously. Cheers to you!
92 days ago
Veronica from VeronicaRussekJoyas says:
Thank you sooooo so much! Budgeting and numbers is one of the areas where I have the most trouble, and one of my business resolutions for this year was to plan ahead, so this is great!
92 days ago
Shannon Malaska from BowKnots says:
yes! spread sheets! It is very nice of you to do the math for us.
92 days ago
Claudine Crangle from claudinescalling says:
I'm crazy for spreadsheets (don't sound like a creative person do I?) - but it's true... that and CRITICAL PATHS - I make them for all sorts of crazy projects
92 days ago
Jenifer Meissner from malibustyle says:
GREAT info - I'm going to tackle it tomorrow after I get my son to school - Thanks!
92 days ago
Melissa from HoneyBeeHolistics says:
Thank you for the info! It is SO important to see where you are going & budget correctly!
92 days ago
Jgirl Lomazzo from ShakanaMoon says:
hi- im really in need of this!! i downloaded it and it is coming up with a bunch of letters and numbers... no chart?!? any advice? i have a mac.. do i need a program to open up excel?
92 days ago
StitchNerd from StitchNerd says:
Thanks for the information AND spreadsheet Jason!
92 days ago
TheBeastPeddler from TheBeastPeddler says:
Wow, I needed this. Thank you!!
92 days ago
courtney from larking says:
Thank you so much for this -- and for your offer of assistance, too.
92 days ago
Sonia Lyne from dandelyne says:
This is brilliant!! I had written in my calendar that I needed to research a template that could do just what you have offered!! YEAH!!! Thank you so much! XO
92 days ago
Peter and Marjorie from SunsetPrintAndDye says:
Thanks so much! This spreadsheet is very helpful right now. It made me realize that I am really doing this! -mm
92 days ago
Sam Milam from FuzzyPenguinDesigns says:
Thank you! I don't ever look at numbers. I just make things.. Then when they sell I go get more, make them, then sell them. That way if I'm not selling I'm not buying... Most of the time! :)
92 days ago
Karla from SpinningMermaid says:
This is fantastic! I am a new store.. long etsy buyer and this is a great planning tool. Thank you so much Jason!
92 days ago
Katy Michalski from michalskibiz says:
Wow this is really great, thanks for the lesson, I'll put it to good use.
92 days ago
J Quillen from claribelskincare says:
Really helpful, thank you!
92 days ago
designsbyyan from designsbyyan says:
Thanks, Jason! Very useful and easy to use! It is a great example to study!
92 days ago
Lolafalk from LolaFalkDesigns says:
This is awesome, thank you so much for sharing!
92 days ago
Mojca Becaj from mojcabecaj says:
Dear Jason. Very clean, organized and representative tool. thank you for sharing. It will be useful!
92 days ago
YellowDaisyBoutique from YellowDaisyBoutique says:
Thank you Jason.....very useful and beneficial tool we can all use!!
92 days ago
Betsy Lewis from GoodAndOld says:
Jason - thank you so much. I needed a really simplified approach to budgeting and this tool did the trick. I really appreciate that you offered this to us Etsians. Thanks again and the best of luck to you and your wife in all your business endeavors.
92 days ago
Rozette says:
I didn't sell on etsy yet. But I have been reading your articles and they have given me the confidence to at least try and feel like I know what I am doings. Thanks for the budget planner.
92 days ago
Discord Vintage from DiscordVintage says:
I'm only just starting as a seller on Etsy, after being a buyer since 2007! I didn't realize there were so many things to do and consider, this article has been so very helpful! Thank-you Jason.
92 days ago
beadmarie says:
I have a question about how this works. Should we enter our average sales in the yellow boxes? Some months are really slow, like now and other months, such as December have many sales. Should I just enter an estimated average? Thanks.
92 days ago
LeAnn Frobom from pasqueflower says:
Great article, and I appreciate the spreadsheet, but I expect more peaks and valleys -- not a steady month-to-month growth.
91 days ago
mira (pinki) krispil from MIRAKRIS says:
Thank you for the information :-)
91 days ago
Naama Brosh from nbrosh says:
Thank you!
91 days ago
busybee party from leelaaloo says:
That's really great to share the spreadsheet. Can we expect to see the spreadsheet directly integrated to ETSY?
91 days ago
Theresa Isaksson from Scandivintage says:
Thank you, this is just what needed! :)
91 days ago
lizfactor says:
Thank you for such a great contribution!
91 days ago
Alice Feger from dandeliontree says:
Thanks for this, it is great. I have only one question: Is there a way that I can change the currency into british pounds? that would be even more helpful! Many thanks, Alice
91 days ago
Fatima Silva says:
Thanks for sharing such a great contribution! Your spreadsheet is awesome.
91 days ago
Kay from KayWacker says:
Very helpful, thanks!
91 days ago
Victoria Baker from LittleWrenPottery says:
Im often at a loss when it comes to numbers, I've always struggled with them! Thanks :)
91 days ago
Patricia Caldwell from thebutterflyquilter says:
This looks great. Thank you for sharing. Now I need to do this some time this week!
91 days ago
Jean from 183NorthWorkshop says: Featured
Thank you for your generosity in preparing and sharing this with the community. I am a former CFO (now my "other" job is part time bookkeeping), and I think this is an excellent budgeting spreadsheet.....not overly complex, and very user friendly. I found it is much easier to look at someone else's business objectively. When your own business involves impulse fabric and raw material "buys" for new creations you just must make, it's not as easy to stay on budget. Thanks again.
91 days ago
HappyWhoos from HappyWhoos says:
Thank you so much for this awesome spreadsheet and advice! I will put it to good use!
91 days ago
Lisa Fleming from SweetSummerBaby says:
Thank so much! This is just what I needed!
91 days ago
Michelle and Adam Morgan from thecrazyelephant says:
I really want to try out the spreadsheet, but I don't have Excel so I can't open it : P
91 days ago
karenskrafts from karenskrafts says:
How did you know this is exactly what I need? :) This is my fifth year selling jewelry. While it isn't my main source of income, I would like it to be in five years, or so. Thanks for providing a tool that will help me get there!
91 days ago
Janelle and Jason Ethridge from NomadCraftsEtc says:
WOW! What a cool financial tool. Thank you!
91 days ago
Barbara Zuazua from QuiltAndFiberArts says:
This is very generous of you to offer. I don't quite understand how to use Excel and this makes it so simple. I tried it out with numbers from the top of my head. It's very interesting to see how things look over one year. I can see this as a very motivating tool. Thanks so much for the much needed help!
91 days ago
Zeloco from EatMeInkMe says:
Oh my god, I love you! ;_; <33
91 days ago
Connie Kroenung from warpandweave says:
Very helpful! This "road map" will help me measure the costs I have to get me where I want to be at the end of the year. I checked out your shop and will most definitely be contacting you about some of your products! Thanks for sharing!
91 days ago
Syrah Gilley from thePieceDeResistance says:
Thank you for making such a helpful worksheet, I'd never know where to start on my own! Can wait to start plugging things in and seeing how it adjusts over the year!
91 days ago
Kelcey from SeedandSky says:
Like beadmarie, I am wondering how to estimate growth when so far my experience has been that my sales are not steady- with some months (like the holidays) being far greater? The chart is very easy to use though, thank you!
91 days ago
Elke Van Dyke from ElkeVanDykeDesign says:
Yes, Yes, and Yes! This is exactly what I have been needing!
91 days ago
Ally Shaw from feralstrumpet says:
This is exactly what I needed right now. Thank you so much!
91 days ago
Jason Helping Your Etsy shop thrive from JJMFinance says:
Some additional comments: If you want to budget in a different currency than the US dollar, just pretend the dollar signs are your currency. Numbers are numbers and will be forecasted appropriately with the growth rates. Putting a few month's average values in the yellow cells can also yield an appropriate budget. Regarding monthly fluctuations - those are to be expected. This budgeting model uses a constant growth rate. Fluctuations are sometimes hard to budget for as well - aim for a budget that looks appropriate that "smoothes" out some of the monthly hiccups. Thanks for all the encouraging words!!!! :)
91 days ago
Brittany from madewithhope says:
Thanks for posting this. It puts a lot into perspective and I love the color coding!
91 days ago
Catia from ALittleWorld says:
The spreadsheet is great! Thank you so much! Very helpful!
91 days ago
Leslie Price from LekaliaInteriors says:
Thank you so much! This is awesome!
91 days ago
Sarah from sarahndipities says:
This is fantastic! Thanks so much for the insight!
91 days ago
ElaineMWay says:
This is brilliant. I just did a budget the other day on Excel and it had none of the bells and whistles you have on yours. I just started budgeting...shame on me...and this spreadsheet is going to help me immensely because my business fluctuates throughout the year (wedding industry). I can't thank you enough for posting this. I would hire you for my accountant if I didn't already have one!
91 days ago
Mary Vivit from Earthmist says:
Thank you very much!
91 days ago
Botene from Botene says:
This is great!!! Thank you so much for making this really easy for us. This is exactly what I need right now. Work on my Financials!!!
91 days ago
Natalie Scott from TheVintageMagi says:
Is anyone else having trouble viewing this on their mac? I am! help!!!!!
91 days ago
Paul from phototiles1 says:
Jason, an interesting article. I would guess that most Etsy crafters don't see a uniform growth rate from month to month. If they sell items that are often bought as gifts they might see a large bump in sales in the November / December time frame. Specialize in wedding items, maybe June is a big month. For people that see seasonal variations, a comparison of each month in the current year to the same month last year may be more useful. I definitly agree with your premise that a budget is useful. When I was doing my schedule C I realize we spent more on materials than our total revenue. It is only our second year and we were expanding our product offering, but we can not keep that up if we want to actually make money.
91 days ago
Brooke Nicosia from impulsevintageshop says:
I love this. I want this. I need this!!! I currently do not have Excel. Lame, I know. I use Google docs for everything. I can open it there but the format is a bit messed up. Any suggestions?
91 days ago
Brooke Nicosia from impulsevintageshop says:
Natalie Scott - I have a mac, that is probably part of the problem!
91 days ago
Ann from delhicraft says:
thakyou very much, very useful information.
91 days ago
Emma Tiltman from champagnedreamsuk says:
Thanks Jason, this is exactly what i've been needing to create and never have the time to. I may be based in the UK but the basics are still the same.
91 days ago
Kristine Barnes from KristineBarnes says:
Love this budgeting tool you've provided! When I downloaded it (trying several times), the bar chart was lost. Any suggestions how to retrieve it? If not, directions on how to recreate it would be immensely appreciated. Thank you for sharing your skills with us and helping us to become better business planners!
91 days ago
misskukie from misskukie says:
I've started using it immediately! Thank you so much for sharing!!!
91 days ago
claytheism from claytheism says:
This is a great planning tool. I work with numbers all the time, so I get the formulas - but my stumbling block is assigning costs, especially adminstrative. What is my expense in dollars & cents to stop making stuff and start taking photos of it? Then writing copy? then uploading the pix? What is the value of my time to go to the post office and wait on line? Should I estimate my worth at minimum wage levels? Or give myself a one-percenter's salary? Similarly raw materials - I work with polymer clay and know what a 2 oz package costs. BUT --- how do I figure out how many smidges of this color, and pinches of that one go into a given project? I rarely (make that never) actually measure out exactly how much I'm using. Should I just save all the empty plastic wrappers and count them up at the end of the month? Thanks a lot for getting my wheels spinning. Carolyn
91 days ago
Ema from ElwynJewelry says:
Thanks for sharing!
91 days ago
Amanda Floyd from brownstreetbespoke says:
Thank you. I have already typed in some guesstimates and can now see where I need to focus my time so I can reach the income I would like to earn. This spreadsheet has turned the numbers and ideas that were in my head into something closer to reality. Amanda
91 days ago
Jill Large from brnydgrl says:
Fantastic - thanks for sharing this!
91 days ago
Margaret from Marlastwistedwire says:
Great tool. Thank you so much. I'm just starting and want to do things right from the beginning rather than changing. I too overspend and purchase on a whim rather than what I need. Your budget worksheet has made me realize I need to change this if I want to be successful in business. I will contact you for my accounting needs.
91 days ago
Silvia Sullivan from SilviasSimpleSewing says:
It is simple and has everything we need. I have a hard time assigning admin costs and growth rate. I really do not know where to start on those two things. Is .05 or half a percent growth per month a good estimate?
91 days ago
Petal Jewellery from petalgifts says:
Thank you very much - it's great to have a source of helpful advice on Etsy, and now to have worksheets! :)
91 days ago
Kathryn Greenwald from SweetBohemianLife says:
Thank you so much! There it is, now all I have to do is fill in the blanks! What a help!!
91 days ago
Christine and Marc from TaylorArts says:
Great to have some concrete tools to keep us sky walking artists on the ground. Good luck to everyone who's trying to crunch the numbers.
91 days ago
Courtney and Sujen from bpps says:
thanks so much for this.
91 days ago
Marilyn Payne from marilynpaynedesigns says:
Thank you so much!
91 days ago
Connie Haskell from redemptionart says:
Jason, thank you so much. I have a wonderful friend who does my bookkeeping, but my issue is projection, especially in how it should motivate me...so needed right now! Thanks again and Aloha!
90 days ago
Karen Sauers from jealousmoon says:
Thank you Jason for this wonderful accounting tool to help us and your fellow Etsyians. This gives us something to look ahead at using the "left-brian" stuff. Have a fantastic 2012!
90 days ago
Myl from mylsarthouse says:
Thank you Jason for such valueable information. I have chosen to sell my jewellery and photos on etsy but one of my many headaches is budgeting both on paper and will power.
90 days ago
Margherita from Arthings says:
Thank you very much! You're great ^_^
90 days ago
Alice L. from AlicelovoStudio says:
Thanks a lot! Very useful! :)
90 days ago
glitterandstones from glitterandstones says:
Thank you so much for sharing this information. It has given me some ideas as how to work on my budget
90 days ago
Jaime Hartman from auntiemommie says:
This may sound lame but I'm a complete newbie and didn't even realize budgeting would be an important step in the development of my business until I saw and read your spreadsheet and article. Thank you for starting me out right!
90 days ago
tpumpkins from tpumpkins says:
Like Jgirl Lomazzo mine is also coming up a bunch of numbers and letters? Any suggestions?
90 days ago
Charles Elliott from TaleWeavers says:
Great stuff with a workable spreadsheet no less. You help to make Etsy a great place to 'work.' For your next article, might I suggest your take and advice on how to create a workable Profit and Loss statement. Thanks for sharing. I will be working with this worksheet today. Charles
89 days ago
Traci Vogel from threebirdsunite says:
I really appreciate any help when just getting started. Although, this is some information that I may have known before, it is nice to be reminded that I am not alone in the neccessity of getting organized and planning ahead. Thank you for the reminder and the guidance!
89 days ago
Annette Wiggins says:
Hi Jason, I'm have been gathering informaiton and getting my product stockpiled so to speak and find that this tool is a great one to use. It allows me to project financials and get a vision for the year to year. Can't thank you enough!
88 days ago
Terry Cordova from MyQueenWearsBlue says:
Thank you Jason, your work is very much appreciated and I'm going to take advantage of this very useful tool! Terry
88 days ago
Ioana Avram from bijuterra says:
thanks for sharing. helpful
88 days ago
Ailsa White from Oldyworldy says:
Thanks for sharing, this looks really useful. Do you have a version in pounds sterling rather than dollars by any chance? Ailsa
87 days ago
Jeannie from JeannieGrayKnits says:
Wow! What a motivator! As a newbie shop owner, I don't know what to expect as far as sales go but I can see where this spreadsheet will help me tremendously. I love how it paints such a clear picture of the "what if's". Thanks so much for sharing!
87 days ago
Jeannie from JeannieGrayKnits says:
Btw, I'm on a Mac & had no trouble at all downloading it. It opened right up into Numbers.
87 days ago
Ariya from ARIYA5 says:
Wow! It is great! Thanks so much for sharing,really helpful;)I love it!!! THANK YOU :))))
87 days ago
Stitches by Diane from SewingbyDiane says:
I just down loaded, thanks for sharing. This may give me the help I need as I am just starting at Etsy.
87 days ago
Matteo and Francy from sunflowerdesign says:
great ! thanks a lot
86 days ago
Marci Hammons from LuchadoraPrintCo says:
Thanks so much for the spreadsheet!
86 days ago
Knitarelli from Knitarelli says:
Thank you so much!!!!
86 days ago
Elan Buendia from HeylaniJewelry says:
This looks amazing... just Pinned it, also! Thanks!
85 days ago
Rishka from RBJohnson says:
I had downloaded the spreadsheet and put in my numbers, boy they look good :) But from month to month income and expenses are different, so I will make an actual worksheet on this spreadsheet to check how much on target I am. I also had to include postage in other expenses. Thank you for such a simple & easy to use budget spreadsheet.
85 days ago
Carolyn Eady from SproutsPressDesigns says:
This is fantastic, thanks so much for sharing this!!
85 days ago
tennesseehills from tennesseehills says:
Thanks Jason & Etsy! This is just what I needed to put things in perpective.
84 days ago
Alexia Moore from mooreimpressions says:
Thank you for sharing this with us! So helpful.
83 days ago
Sharon Hadley from sharonhadley50 says:
Wow Jason you have come into my life just at the right time. I'm JUST getting started and this will be most helpful when I start bringing $ in. Thanks, I'll have it when I need it.
83 days ago
Shelli Worley from WorleysLighting says:
This is great stuff. Downloaded spreadsheet, check! Budget, check! I am a couple weeks away from quitting my day job so this was very helpful to me. Thanks!
81 days ago
Matti's Millinery and Costumes from MattiOnline says:
Fantastic advice! Can't wait to get started. Thanks for sharing, Jason!
81 days ago
Mel (Melody) Hoskinson from OhSewCuteByMel says:
Thanks you, Jason, for sharing. Can't wait to get started!
80 days ago
Sarah Plowman from madebysarahplowman says:
Thanks so much! I'm completely mathematically illiterate so I desperately needed help with budgeting :)
78 days ago
Sarah O. from sweetsarahshop says:
thanks for the help!
78 days ago
Rita Oliveira from schics says:
Thank you for your help I´m going to 'study' it.
78 days ago
Sister Clarice Steinfeldt, SDS from Sistercuts says:
Jason.... I appreciate your budgeting worksheet.....actually, I use it to visually view my actual profits/losses........each month. Thanks so much! Sister Clarice Steinfeldt, SDS
35 days ago