Small Business Budgeting – Best Practices and Tips for Success
As a small business owner, we know you face an endless set of challenges – from operational to financial. At internet Accountant, one of the most intimidating tasks we consistently hear about is budgeting. Figuring out what to include, choosing categories, estimating expenses, and forecasting revenue can be overwhelming, let alone sticking to your budget throughout the year.
Creating and maintaining your budget should be empowering, not debilitating. Here are some best practices and tips that should set you up for success.
- Start with a plan. While a strategic plan is great, start by documenting your goals and objectives. Use that information to help you plan and prioritize your budget.
- Closely track expenses. Keep track of all fixed and variable expenses, so that you can accurately project cash flow and adjust your budget accordingly. Prioritize expenses based on their importance.
- Review regularly: Review your financial results at least once per month, including budget variances. Adjust as needed based on actual revenue and expenses – it’s okay to update!
- Consider cash flow: Keep an eye on your cash flow, as it’s important to have enough cash on hand to cover your expenses and make investments in your business.
- Seek professional help: Not that kind. There are experts like iA who can help you plan and manage your budget, and report results. Where is your time best spent?
Stick to your budget
Remember that your budget needs to be current and as accurate as possible for it to be of any use. Set aside a little time each week, or at least once per month, to keep it updated. If you don’t have the time, or want to use that time elsewhere, a budgeting expert like internet Accountant can be worth the investment. We can help you plan, create, and manage your budget, with monthly reporting that provides an early warning about variances that may and let you know things such as when spending is on track of business areas that may require your attention.
Want an iA budgeting expert to review your budget – no charge? Contact iA today.