Why Budget?
Planning for that very expensive pair of shoes? Or perhaps that extravagant trip to the Maldives? You may have already learned how to budget for your personal finances, but do you realize how important it is to have a budget for your small business? The mechanics are a bit different, but the results can be just as rewarding when done correctly.
A budget is a great resource. Budgeting outlines your available capital, estimates how much will be spent in each category of expenditure, and assists in predicting actual profits. A budget captures activities within a certain time frame. Budgets allow you to allocate resources that propel you toward your core goals in your business plans. This allows you to make key business decisions, like when to hire or purchase equipment or when to cut costs to avoid overspending. It allows for contingency plans in the event of emergencies.
Budgets involve calculating your revenue and determining your fixed and variable cost. There are also several types of budgets. It can get complicated depending on the type and size of your business. This is where Lakeesha V. Browne, CPA, can assist you in this process. Contact her for more information or schedule a free consultation today.
Work Cited:
“How to create a budget for your business”. Bankofamerica.com, 13 June 2023, www.bankofamerica.com/smallbusiness/resources/post/don-t-fear-the-b-word-how-budgets-can-liberate-your-business. Accessed 15 December 2023.
