Small Business Budgeting
November 15 2017
If you're a business owner, it's likely that your numbers may keep you up at night. Designing a budget will help ease some of that stress. Budgets provide a guide to where your business is going. If you haven't worked on a 2018 budget, start now. They can take time, but partnering with your accountant or CPA can make the task easier.
Some business owners go through the trouble of making a budget, only to let it collect dust in a drawer. Your business isn't static, and your budget shouldn't be either. Take the time to refer back to your budget often, and it will be an invaluable tool for running your business.
Budgeting at its most basic helps you manage costs, but they also tell you if you'll meet your profit goals. Not only is your budget a way to plan expenses, but it can also help you anticipate your sales cycle, predicting peak periods so you can staff up, and slow times so you can up your marketing programs or schedule team vacations.
Our tips for a successful budget
Decide the profit you want to make then list the expenses you'll need to make to reach that goal.
Your budget is fluid so update it monthly. It should change to reflect the business performance and expenses for the past month.
Incentivize both you and your staff to meet the budget. And, of course, budget for that.
Some questions to ask when you look at your budget:
How is your pipeline? Do you need more inventory or more staff?
Did you have a costly, unexpected expense? Do you need to cut back in other areas to stay on track?
Do you need more marketing?
Do you need to speed up invoicing or payment terms?
Partner with your CPA
While you can create a budget on your own, your accountant or CPA can help. They can review your numbers and help you make projections that are accurate and obtainable. If you should get off track, they can also help you figure out what to do to get back on the right path.
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