Budgets should be one of the first tasks you tackle in your business. It is so important! A budget enables you to concentrate on your cash flow, monitor costs, improve your profit and also helps with planning and making sure your business has money for future projects.
What Exactly is a budget?
A budget is a forecast of your revenue and expenses generally for a year and broken down into months. This serves as a plan of action for your business to help you make financial decisions, identify where to cut spending, grow revenue and help plan to apply for business loans for future growth.
Each month you should be comparing your actual figures against your budget and working out why you didn’t reach your target or why your target is over. If your income is under for the month compared to your budget you can look into why this has occurred. Did you forget to put the ad on Facebook/Instagram? Maybe your advertising isn’t hitting the right customers demographics?
Expenses are also necessary to review as you could have been overcharged or paid an invoice twice. Costs might have increased, so you need to look at other suppliers.
Having a budget makes business life easier. You have a future plan of action and are prepared for future costs coming in.
There are many types of budgets such as Financial Budget, Cash Flow Budget, Operational Budget. We can help you pick the right one for you!
If you are interested in chatting over a coffee to see if you need a budget or would like help to either set up a budget, have someone overview or just ask general questions please call us. We are more than happy to have a chat.
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