Accounts Management

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How to Prepare a Budget Your Business can Grow By

 

Running a business without a budget is like navigating a ship without a compass. Setting aside time to examine and revise your budget periodically gives you more options when making important decisions about where your company should be going, and growing.

 

Assess your finances

 

The first step in developing an accurate and reliable budget is to take a look at your finances. Review income and expenses. Previous records, financial statements and tax returns are important documents for reviewing.

 

List expenses

 

Consider whether you want to develop a budget for 3, 6 or 12 months. Create appropriate categories for all of your expenses — rent, wages, inventory and so on. Always remember to set aside money for emergencies, slow business periods and economic downturns.

 

Examine spending habits

 

Analysing your spending trends and considering your finances will help you project amounts for each category of your budget. Always remember to routinely

re-examine your budget.

 

Review the numbers periodically and adjust them if your business conditions change.

 

Stick to your budget

 

Once you have a working budget, it's important to stick to it. Sharing it with your team, financial advisors and accountant can help you cruise successfully into the size of business you've envisioned for yourself.