4 Benefits of Budget Planning for Your Business

budget planning

It is nearly impossible to run a successful business without a budget in place. As a business owner, you must keep track of how much money you have and what you are spending it on. Budget planning not only helps with the financial aspect of your business, but also improves general business management. Here are four benefits of budget planning for your business.

Pricing Assistance

When you are setting a price for your products or services, you must take into account all of your business costs. The only way to make a profit from your product is to make sure that the price outweighs the cost.

A budget maps out each of your costs including health care, utilities, wages, rent, and marketing. Once you’ve figured out the costs, you can set a reasonable price.

Credit & Capital

When it comes to taking out loans or trying to gain credit, you must prove to the lender that you have valuable assets. Without financial data to prove that your business is financially stable, it is highly unlikely that you will be able to get a good loan.

Having a budget is especially beneficial for new businesses trying to acquire credit and capital because it shows your potential partners how their participation affects your profits.

Adaptability

It is a well-known fact that everything doesn’t always go as planned. Having a budget in place means you can easily track your business’ financial activity and performance throughout the year.

If something unexpected happens that throws things off track, it is easy to make adjustments if you already have a budget in place. Changes can be made as needed to help cut costs and increase profits.

Prevent Unnecessary Spending

Without a budget, it becomes a lot easier to spend money that you don’t actually have. A business budget allows you to see upcoming costs so that you have time to prepare and account for those.

Budgeting out the exact amount for bills and other payments each month will ensure that you always have enough to pay necessary expenses.

PL Consulting for all Your Financial Needs!

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax management, budgeting, and more.

Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.

To book PL Consulting today or get more information, contact us at (410)-764-3731 or at https://www.plcfo.com/contact/

The Best Bookkeeping Software for Small Businesses

When it comes to small businesses, each person likely has multiple roles and responsibilities. The good thing about this modern age is that a lot of things have gone digital, making business tasks easier and more convenient. Bookkeeping software allows you to digitally keep track of your finances and most also provide accounting features. Here are some of the best bookkeeping software for small businesses!

FreshBooks

This bookkeeping software is great for those who send out repeated invoices or need a time tracking feature. Freshbooks can easily be integrated with other business applications so that they can all be accessed from one place.

You are even able to see the location where your customers opened their invoices so that there is documented proof that it was received. Freshbooks has a mobile app that allows you to keep track of your bookkeeping information no matter where you are.

Sage 50cloud

Better for small to medium sized businesses, Sage 50cloud can send invoices, track in and outgoing transactions, and even calculate what you will owe at tax season.

These features are great for tax planning and maintaining your budget. With this bookkeeping software, you are unable to track time and it does not have collaboration tools.

Xero

For those that are always on the go, Xero is a great bookkeeping software. You can customize and send invoices, track your inventory, and create purchase orders all from your mobile device.

This convenient software can send financial reports to your device and easily connects to your bank account. One thing Xero doesn’t offer is live support, which can be inconvenient when troubleshooting.

Intuit QuickBooks

The great advantage that Intuit QuickBooks has is its ability to integrate with PayPal, Shopify, and Square, making it so much easier to track payments.

There are several different plans to choose from, but they all allow you to track your business income and expenses, send invoices, receive payments, run financial reports, and organize receipts. If you opt for a more advanced package, you can track time, inventory, and run payroll.

PL Consulting for all Your Financial Needs!

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax management, budgeting, and more.

Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.

To book PL Consulting today or get more information, contact us at (410)-764-3731 or at https://www.plcfo.com/contact/