What Is a Static Budget?

A static budget is a financial plan that you create once and then use throughout your business. It’s designed to help you stay on track with spending so that there aren’t any surprises or unexpected costs when it comes time to pay your bills. A static budget can also help ensure that you’re covering all of your operating expenses — including payroll — each month, which means less stress for the owner about whether or not their business will be able to make ends meet once everything else has been paid for already!

Definition of a static budget

A static budget is a financial forecast that’s based on a fixed amount of money. This can be done in one of two ways:

  • A fixed-amount budget is one where the total spendable income for the year is known and planned for at the beginning of the fiscal year.
  • An inflation-adjusted budget uses a base figure (such as $100) and adjusts it each month to account for inflation, which means it will always have more money than its original value if you ignore inflation over time.

Creating a static budget

To create a static budget, you’ll need to use a spreadsheet or financial software program. If you’re not familiar with the process of creating a budget, it’s not too difficult—you just need to think about how much money you have in different categories and then add up all of those numbers together.

Once that’s done, compare it against your income statement (the document that tells your company how much money they make) so that you can see if there are any discrepancies between what was reported on paper versus what happens in practice.

Advantages and disadvantages of static budgets

Static budgets are a great tool for small businesses. They’re easy to create, they offer great flexibility, and they can be very accurate. However, static budgets don’t take into account special events or changes in the business environment. If you want to account for these things, then you need dynamic budgeting software like Salesforce Budget that allows your team to create flexible plans on the fly.

A static budget allows you to compare your actual numbers to what you originally planned for your business.

A static budget allows you to compare your actual numbers to what you originally planned for your business. This is a valuable tool for making adjustments in the future, and it can also help you see if your expenses are in line with your income.


A static budget is a great way to keep your business on track and stay organized. You can use it to see how much money your business has actually earned over time and compare it with what you originally planned. Static budgets can also be used as an accountability tool for your team members as well as yourself!

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