Your budget is your steering instrument for 2026
A budget is not just a list of figures, but an important management tool for your company. Whether you run a small SME company or a growing self-employed practice: a good budget shows where you want to go and helps you understand why something is going differently than planned. You do not necessarily have to meet your budget exactly, but it is essential that you understand why certain things deviate. You learn from that, and you can adjust accordingly.
In this article, Marjan Heemskerk from The Happy Financial tells you how to draw up a budget for 2026 step by step, which components it includes and how to avoid considering yourself rich (or poor).
Why a budget is essential
A budget gives direction to your business. It is your financial compass: where do you want to go in 2026, what does it cost and what will it yield?
With a budget you can:
- plan better when making investments;
- see if your prices are realistic;
- respond promptly to higher costs or lower turnover;
- gain insight into the consequences of decisions.
Most importantly, a budget forces you to think about it Why you expect something. And that is precisely what makes it a valuable management tool.
Tip: read more about what a budget is and what types there are.
The three parts of a good budget for 2026
A complete business budget consists of three parts. Together they provide a complete picture of the financial health of your company.
1. Operating budget
By operating budget shows the expected income and expenses over a year. Here you can see whether you are making a profit.
Example: Suppose you run a small marketing agency with two employees. You expect €250,000 turnover in 2026. The fixed costs (rent, software, insurance) amount to € 60,000. Personnel costs are €120,000. So you have €70,000 left for profit, reserves and tax.
This budget helps you see whether your prices and margins are realistic. If those margins prove to be too tight, you can make various choices: increase your rates slightly, save on fixed costs or take a critical look at your hours spent per customer. You can also investigate whether a different positioning or product mix will yield more. This way you don’t just use your budget as a calculation, but as a basis for strategic decisions.
2. Liquidity budget
By liquidity budget shows when the money comes in and when it goes out.
Example: The same marketing agency knows that customers pay on average after 45 days, while rent and salaries have to be paid every month. This creates a tight cash position in March. The entrepreneur decides to create a buffer of € 20,000.
Such an overview prevents financial stress and shows whether you temporarily need extra financing.
Tip: do you need temporary financing? Then check us out overview of forms of financing.
3. Investment budget
In the investment budget list your larger investments, including how you finance them.
Example: The marketing agency wants to purchase new laptops and cameras for a total of € 10,000 in 2026. In the investment budget you can see exactly what this will do to your cash flow and profit.
This is how you draw up your budget for 2026 step by step
1. Start with your 2025 numbers
Use your annual accounts or accounting reports as a basis. Look at turnover, margins and costs. These figures are the starting point for realistic expectations. Analyze what went well in 2025 and what challenges you faced: did your margin decline, were your costs higher than planned or did a customer disappear? That tells you exactly what to pay attention to in 2026. For example, by adjusting prices, controlling costs or shifting the focus to profitable services.
Example: if your turnover increases by 10% in 2025 grewit is logical to expect 5–10% growth for 2026, depending on market developments.
2. Determine your turnover expectations
Justify yourself expectations. Look at existing customers, permanent contracts and potential new projects. Analyze what turnover you can reasonably expect based on previous results and market developments.
Use those insights to make choices: can you achieve growth by recruiting more customers, charging higher prices or working more efficiently? If expectations are lower than hoped, you can determine in advance where you can save costs or postpone investments.
Tip: work with three scenarios to be prepared for different situations:
- Optimistic scenario: everything is going according to plan or better; new customers and orders arrive quickly.
- Realistic scenario: the most likely picture, based on the current market.
- Cautious scenario: less growth or a few fewer assignments; This allows you to calculate whether your company is financially resilient enough.
3. Identify fixed costs
These are costs that recur every month, such as rent, subscriptions, insurance and personnel costs.
Example: Suppose your personnel costs in 2025 were €8,000 per month, and you expect a 5% wage increase. Then withdraw €8,400 per month for 2026.
4. Estimate your variable costs
These costs move with your turnover or activities: purchasing, materials, transport, marketing, energy consumption.
Example: If your turnover increases by 10%, your purchasing costs will probably increase to a similar extent.
5. Reserve for taxes
Many entrepreneurs forget this. Reserve a percentage of your profit every month for taxes such as income tax, corporate tax or VAT.
Example: If you expect a profit of €60,000, set aside roughly 35–40% for tax liabilities.
6. Plan your investments and reservations
Do you want one in 2026? buy a company car, hire an employee or invest in new software? Include this in your budget.
This way you avoid surprises and can determine whether financing is necessary.
7. Test and evaluate your budget
Check that everything makes sense: does the expected profit match your objectives? Can you bear your fixed costs if your turnover is lower?
A budget is a living document. Plan an evaluation every quarter: what was not too bad, what was disappointing and most importantly Why? This way you make the figures meaningful and you can make timely adjustments.
Common budget mistakes and risks
Overly optimistic sales forecasts
Entrepreneurs often estimate their growth too rosy. Result: too little liquidity and disappointing profits. Prevent this by creating scenarios and calculating with realistic assumptions.
Forget taxes
A common mistake: all profits are seen as freely disposable, while a large part still goes to the tax authorities. The risk is that you will receive an additional tax in April and your reserves will not be sufficient.
Do not include buffer
Without a buffer, you can immediately run into problems in the event of a setback (a customer who pays late, a sick employee). Make sure you can cover fixed costs for at least one to three months.
Do not update the budget
A budget is not a document that you create once and then forget about. Without an interim evaluation, you steer blindly and only see at a late stage where things are going wrong.
Tips to future-proof your budget
Evaluate your budget periodically
Every quarter or six months, check what deviates from the budget and why. The point is not whether it is exactly correct on the euro, but that you understand it Why things turn out differently.
Example: If your energy costs are 15% higher, is this due to a price increase or more production? That difference determines whether you need to take action or not.
Use scenarios to stay prepared
By developing a best case, base case and worst case, you know in advance what is needed to continue operating in the event of setbacks.
Translate numbers into actions
Suppose you see that profits are lower because marketing costs are increasing. Then you can analyze whether those extra expenses also result in more turnover.
Stay realistic, but ambitious
A budget is not intended to predict everything perfectly, but to act consciously.
Summary checklist for your 2026 budget
- Analyze your 2025 figures
- Set a realistic turnover forecast
- Calculate your fixed and variable costs
- Include taxes and reservations
- Calculate your investment plans
- Set up scenarios
- Schedule quarterly moments for evaluation
Your budget for 2026 is a means, not a goal
A good budget is not a goal in itself, but a tool to help you stay on course. Think of it as your financial dashboard: it not only tells you how fast you are driving, but also when you need to adjust. By looking structurally Why something deviates from your planning, you make your company stronger and more future-proof.
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