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New Year Planning - Time to get a budget

Posted 13 Dec '17

Is it time for you to get a business budget?

Budgeting might sound irrelevant to you if your business is performing reasonably well financially, you are making payments when needed, up to date with BAS and hitting all your obligations.

However, we’re here to tell you that getting a business budget for the New Year may be your greatest tool to easily identifying how to sustain and grow your business steadily over the course of the year.

A business budget is critical to your business planning.

It’s obvious that the purpose of a business budget is to forecast your income and expenditure. But it’s important to understand the power of a budget as a tool for your decision-making and accountability to your business performance.

Your business budget can help you to:

Predict how the business may perform if particular strategies, events or plans are carried out.

Your budget can allow you to be prepared for different scenarios (ie. You lose your biggest client, a staff member leaves etc) By identifying how your business would perform under certain circumstances you can put processes in place to minimize the risk of things happening, or create a plan of action.

Assist you in decision-making

Your budget will allow you to allocate certain amounts for areas in your business such as advertising, stock, staffing etc. By knowing these numbers, you will be able to determine when you have exhausted your budget for each area and essentially help you to determine your course of action when potentially engaging, affording and/or managing new services.

Keep you and your staff accountable

Your budget enables you to have a forecast of your income and expenses for the year that you can use to compare your actual business performance. Essentially keeping everyone accountable, and identifying areas of success and potential shortfalls that can be improved.

The main winning factor of having a business budget is that it helps you to be prepared so that your business has the opportunity to thrive no matter the obstacles that it may endure. And let’s face it business is layered with obstacles!

Empire Accountants are offering business budgeting and planning for 2018 right now. Simply fill out the contact form to get your budget chats scheduled for 2018.

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