Did You Know Xero Has a Budget Built In? (Because Most Sole Traders Don’t!)

If you’re using Xero and still trying to manage your business budget in a messy spreadsheet or (let’s be honest) in your head, today’s post is for you.

At Northwest Accountancy, we hear this a lot: “I wish I could plan ahead with my business finances, but I never know where to start.”

The good news is that you don’t need fancy tools or complicated software. If you’re already using Xero for your bookkeeping, you’ve already got access to one of the most underrated features of Xero – the Budget Manager.

Yes, really. Xero has a budget tool built right in.

Why budgeting in Xero just makes sense

You’re already entering your income and expenses into Xero. You’re probably running reports and keeping up with your reconciliations (well… most of the time). So why not build your budget right where the rest of your money lives?

Using Xero’s built-in budgeting tool means:

• You can compare actual results against your budget with one click in beautiful clear reports.
• You get a clearer view of how your business is really tracking, compared with your expected results.
• You stop guessing and start making informed decisions because you can see, with green and red arrows, financial changes and progress as you go.

And no, it doesn’t have to be complicated or perfect. This isn’t about predicting the future. It’s about giving yourself a solid place to start!

Not a “numbers person”? That’s exactly why you need this.

You don’t need to love spreadsheets or know every detail of your financial reports to set up a simple, helpful budget. The Xero Budget Manager is designed to be basic, but powerful.

You can:

• Set monthly income and expense goals
• Spot cash flow gaps before they surprise you
• Use it as a conversation starter with your accountant or partner
• Keep yourself grounded when things get busy or unpredictable.

And the best part? You can update it as you go!

This isn’t a “set it once and forget it” kind of tool. It grows with you. As your business shifts, your budget can shift too.

A great first step for the “unexpected” bookkeeper

If you’re managing the books without formal training, whether in your partner’s tradie business, your own side hustle, or a local club, using the Xero budget is one of the simplest ways to take more control without adding more overwhelm.

In the Unexpected Bookkeeper course, Jodi Porteous walks us through how to set Xero up step-by-step, so you don’t feel like you’re just pressing buttons and hoping for the best. Because having a budget isn’t just about numbers – it’s about confidence, clarity, and making better choices with the money you’ve already got.

Want to give it a try?

Next time you log in to Xero, head to the Accounting menu and click on Reports then Budget Manager. Even if you start with just a rough plan for the next three months, you’ll be miles ahead of where you were yesterday.

And if you want help setting it up the right way, without feeling silly asking the basics – this is exactly what the Unexpected Bookkeeper community is for.

Check out the course and get started here!