Have you built a budget for your business this year? Budgeting for your business is crucial and it is a great tool that helps you see where your cash flow will be throughout the year. Take an hour or so and go through your expected bills and plug them into your accounting software or even just a spreadsheet. Think about what you are planning for sales for the year, do you have a time of the year that is slower?
Helping you plan throughout your year
Plugging those expected numbers in monthly will help you see how your cash flow will look throughout the year. Plugging in your expected income and expenses will help see what months might be a bit lean and what months could have extra cash that can be set aside for the leaner months. Look through your expenses to see if there is anything that needs to be changed or tweaked. Do you have subscriptions that you just don’t use anymore? Maybe you are using three systems to do tasks and upgrading to a beefier system could streamline those tasks and cut down on errors. Is it time to consider hiring more staff?
Fluidity is key
Write out the budget and remember that every budget is out of date as soon as you finalize it. You will not know everything at the beginning of the year that could happen. You will need to adjust as you go when you make changes in your business. It will not work for you and will only frustrate you, if you do not adjust to those changes because you will be comparing your past plan to your current reality. Your business is fluid, you could change your prices, offerings, or systems at any time in the year and that will affect your budget. List anything you want to look closer at and schedule those as tasks on your calendar for later or, even better, delegate the research to a teammate.
Do you need help creating your budget?
This is a great time to look ahead at how you want to grow your business and what you need to do to get there cost-wise. Do you need help with where to begin? Because budgeting for business is so crucial, set up a call with me here and we can walk through the process.
