Do you need a business budget?
Originally Posted 12/31/21
Budgets and numbers and savings and debt pay off? We hear a lot about this when the new year comes our way. I don’t know any financially successful families or businesses that don’t have a working budget for their finances. So do I need one for my business? The resounding answer to that question is “Yes!” Like anything else in our business practices, planning is one of the critical elements in achieving. Our finances are a huge priority to our business’s health, wellness, and longevity. It’s not just the money that comes in, but it’s staying on top of payments, subscriptions, and supplies. If I spend all my business income on marketing, how will I do loan signings when I run out of paper and don’t have the cash to order it or pick it up?
If you don’t have a budget for your finances, it’s essential to get that handled quickly. If you don’t have a budget for your business finances, well, that’s what this blog is all about. After reading this article by Nerd Wallet, I was encouraged to talk about the practical reasons why having a business budget is essential.
Meredith Turits from Nerd Wallet authored this October 30, 2020 article, “ How to Create a Business Budget for Your Small Business.” She effectively communicates the importance of a business budget and explains how to set one up. Her article is fantastically written, and I will not rewrite it here for you. I will, however, share her six steps to creating a budget:
Examine your revenue
Subtract Fixed Costs
Determine Variable Expenses
Set aside a contingency fund for unexpected expenses
Create your Profit and Loss Statement
Outline your forward-looking business budget
This information is so important. A budget can benefit your business in many ways, the least of them is understanding your money. When it comes to building or keeping your budget, the options are endless. You can write it in a ledger, excel or google sheet spreadsheet, or you can use any number of budget apps on the market today.
I hope you will take this information into serious consideration and get your business budget up and running today.
If you have any questions or comments, feel free to email me.
Jen Cooper
JKC Mobile Notary
559-212-4706
