Does the thought of creating a budget for your small business make you cringe? Many business owners feel that it is a difficult process to create a budget, but it is necessary to be able to make informed decisions and to steer your company onto a strong financial path.
Many companies use a product called Xero or QuickBooks to keep track of their financials. If this is a product that you use, making a budget may be a lot easier than you imagined!
The first step in creating a budget is having organized accounting records.
If your records are a mess, then it can be very difficult. If this task is overwhelming, work with a bookkeeper to get your online chart of accounts set up accurately to begin with. Now is the time to clean up those records and start moving forward.
There are some easy steps to keep in mind as you create your budget.
Look at your budget as a measurement tool.
Regular review of your budget allows you to adjust for variances and provides the opportunity to fix a problem before significant losses are realized. Set a budget, track your expenses and review the return on investment regarding the various marketing initiatives. This helps business owners set a strong foundation for success.