When most people hear the word "budget" they think it's a dirty word but it doesn't have to be. A budget put simply is just a plan of how you want your finances to look over a time period. In most cases 12 months is a good time period to start with.
As they say, if you fail to plan you plan to fail. The key reasons your small business needs a budget are as follows:
1. Helps to make decisions regarding allocation of expenditure such as advertising, marketing, hiring a new team member or purchasing a new piece of equipment.
2. Provide direction so that you have a clear path of expected revenue for example and if a growing business what the revenue looks like after 12 months of continued growth.
3. Assist with financing - sometimes the bank will request a budget to obtain finance and if you already have one in place it won't delay the process.
4. Prepare for holiday periods - it is very important to budget so that during the quieter periods the expenses are kept to a minimum
Contact us today if you need help with a budget or forecast. We also have our Business Live Dashboard which assists in comparing your budget figures with actuals in an easy to understand graphical dashboard. Our Business Live Dashboard & monthly expert reporting provide transparency and visibility across your business, focusing on profit not just revenue.
Founder & Director
Two Sides Accounting
02 9030 0269