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England and Wales > Your Budget > Business Budget > Stage 1: Business Income

Stage 1: Business Income

Subsections : Business Budget |Household Budget |Interactive Budget Sheet |Cashflow Forecast |

Use your books and bank statements to work out how much money you have taken for sales over the last three months.

It is best not to include money for things that you have sold but have not yet been paid for. Only include money you have actually received.

The interactive budget sheet will allow you to enter what period of time your receipts are over and whether this is weekly or monthly. Choose the most relevant period of time to enter to make sure you get a true picture of the business.

For example: Choose the last three months of trading if this is a typical period of how the business runs
or
If the business is seasonal, choose the last 12 months of trade to get a realistic average.

It is important to also bear in mind what trade may be like in the near future i.e. don't base your budget on the last three months if trade is likely to drop in th next three months. If you are unsure phone us for advice.

If you select weekly, make sure when entering your business costs you do these weekly as well. If you select monthly, these should be entered monthly.

Go to Increasing your income to see if there are extra benefits or allowances you are entitled to.

Late Payments and Bad Debts

Credit Control (140KB)

If someone owes you money and they are not paying you, then you should speak to or meet with them to find a resolution.

This may include an instalment arrangement or where there is a dispute, coming to some agreement.

Where an invoice is partly disputed you should ask for the non-disputed part to be paid immediately and then resolve the remainder separately. Be careful not to harass the debtor.

If a business owes you money, you may have the right to claim interest from them, phone us for advice.

If you cannot recover the debt using a direct approach then you may wish to consider court action (either by yourself or through a solicitor).

You could also consider instructing a debt recovery agent. You will need to weigh up the costs of taking any formal action, particularly if the company has a defence or is unable to pay.

A good credit control system can considerably reduce the problems of late payment and bad debts. Your local enterprise agency/Business Link may be able to help you set up credit control systems.

If you suffer from a bad debt, and are registered for VAT, then you may reclaim the VAT on the debt once it has been due for more than six months and has been written off in your accounts.

Go to Stage 2: Business Costs

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