When it comes to creating a budget for your business, it’s essential to estimate your spending as realistically as possible. Here are three budget-related errors commonly made by small business owners and some tips for avoiding them.
1. Not Setting Goals. It’s almost impossible to set spending priorities without clear goals for the coming year. It’s important to identify, in detail, your business and financial goals and what you want or need to achieve in your business.
2. Underestimating Costs. Every business has ancillary or incidental costs that don’t always make it into the budget–for whatever reason. A good example of this is buying a new piece of equipment or software. While you probably accounted for the cost of the equipment in your budget, you might not have remembered to budget time and money needed to train staff or for equipment maintenance.
3. Failing to Adjust Your Budget. Don’t be afraid to update your forecasted expenditures whenever new circumstances affect your business. Several times a year you should set aside time to compare budget estimates against the amount you actually spent, and then adjust your budget accordingly.
If you would like to set up a budget for 2016 to help meet your business and financial goals, we can assist you by providing guidance. As a CPA, Accredited Small Business Consultant, and Advanced Certified QuickBooks ProAdvisor, Linda specializes in working with small business owners and provides tax, accounting, financial analysis, management, planning, and small business consulting services. She can help you to start, manage, and grow a successful small business. Call her today at (727) 391-7373 or else visit her on the web at http://www.LStortzCPA.com.