1.Accounts payable which are fixed or variable costs. Examples such as rent, electricity, payroll, taxes, and advertising. Many business owners feel that there should be a little bit of a buffer in this budget category because many of these items do not have a fixed price every month.
2.Accounts receivables are assets of uncollected income that is owed the business by sales of products or services to customers. This category is also flexible because customers are rarely bound to a purchasing contract although some businesses do operate with that type of contract.
Many small businesses fail in their first year due to insufficient operating funds and the lack of capital planning. Planning a financial budget requires time, resources, and realistic goals. Expect that initial operating costs will exceed your sales revenue for at least the first one or two years.
You will need to budget enough capital to cover operating expenses until sales can eventually pay for, and exceed, these costs.
To be a successful small business owner you must be diligent, patient, and have control and management of your financial resources.