As the first month of the new decade reaches its end, it’s time to analyze how well you’ve been sticking to those New Year’s resolutions. How well have you been adhering to the budget you created for the year? It’s easy to get off track when life can be so unpredictable at times. Here are some great tips for maintaining your 2020 business budget!
You do not have to handle all elements of your business on your own, nor should you try to. Having a team to help you with your business budget can help to not only improve efficiency, but also hold you more accountable for sticking to the set budget. Create a budget team of employees that will assist you in maintaining your business budget. Having more than one voice can help you create a plan from multiple different perspectives, allowing you to consider things you may not have thought of on your own. You should keep employees updated on both short and long-term financial goals so they understand the vision and are also prepared for any upcoming financial changes.
Every business has potential risk factors involved that can affect their finances. You want to analyze all of the possible risks that your business has and budget accordingly. It can be difficult to budget for things that haven’t happened yet and that may never happen, but having extra money set aside just in case can save your business in case of an emergency. You want to always leave room in your budget for any unexpected expenses that may arise.
When you are mapping out your expenses for the upcoming months, it’s always best to overestimate rather than underestimate your expenses. A lot of businesses operate on a project-to-project basis, which means that no two projects will be exactly the same. Some projects may go over-budget and you have to be able to compensate for that. As mentioned before, an important aspect of budgeting is planning for the unexpected. Leaving room for going over budget will ensure that your business continues to make money rather than lose it.
The phrase “time is money” is something that we hear often, but often don’t account for in our business budgets. The more time a project takes, the more money it costs in the long run. A big part of maintaining your business budget is to always plan out your time as well. You want to treat your time as if it’s money, meaning setting concrete project deadlines to ensure things get done in a timely fashion. If you think a project will be finished on Friday, promise delivery on the next Monday. That way, you can deliver it early if it gets done on time and leave some extra time in case the project isn’t finished by that day.
The best way to maintain your 2020 business budget is to constantly go back and revisit the budget. When unexpected expenses or income arises, you want to adjust your business budget accordingly. Businesses are constantly changing and fluctuating, so your budget should do the same. A good rule of thumb is to revisit your budget at the end of each month to make the necessary changes require to keep your business on track.
At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax preparation, 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/
Managing your business finances correctly and efficiently can mean the difference between business success…