Budgeting is something all businesses need to consider. Here are a few quick tips.
Preparation is the key
As a budget is used as a guide for your business’ finances, it is important to ensure that it is prepared properly.
Set aside ample time to prepare the budget and update it regularly, or whenever necessary.
Be realistic in your budgets.
Use historical figures if available as a guide to help you budget costs and sales.
However, always remember that historical data is only a guide.
You have to try and anticipate any factors and changes that can influence the future.
Allow for unforeseen expenditures.
It is inevitable that your business may, at some point, be faced with expenses that were not originally planned for.
It is a good idea to allow for some funds to be allocated as a contingency to meet unexpected costs.
Include input from others when preparing the budget.
They may be able to assist in preparing realistic figures that are attainable.
Furthermore, when they are included in this process, they are more likely to be motivated to help achieve targets.
Katrina Brennan, Principal, SRJ Walker Wayland Business Growth Advisors, Accountants and Auditors, Level 2/2 Innovation Parkway, Birtinya, 5301 9957, srjww.com.au
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