Business Budgeting: How To Set Yourself Up For Success

While we strongly believe the saying “behind every successful business is a great accountant,” we recognize that every business’ road to success is different. One thing remains the same, however, and that is a good, preliminary budgeting plan will inevitably set your business up for a much smoother ride than trying to play things by ear.

We put together a little list of universal budgeting tips to be applied at any time, to businesses of all shapes and sizes, making your (and your CPA’s) life easier!

1. List your set expenses
Make a list or chart of all your recurring expenses, along with their costs and due dates so you know what’s coming and are never late with payment. This includes things like rent, utilities, payroll, insurance, and any materials/inventory your business might require.

2. Put debt repayment at the top of your list
After you’ve taken care of the payments that keep your business running turn directly to any and all debt you have regarding your business. These payments should come before any extra expenses so as to stay ahead of excessive interest charges and keep you on track to pay off all loans and credit cards. The sooner you can stop making those payments the sooner those funds can go toward exciting new facets of your business!

3. Save for hidden/unexpected costs
It’s so important to set aside a percentage of your business’ earnings for the inevitable surprise fees and expenses that will pop up through the course of business.

4. Think big, save big
Always, as a general rule of thumb, overestimate the cost of things. That way when something ends up costing less you can relocate those funds to other areas, but if the price is inflated your budget is padded to accommodate.

5. Constantly revisit your budget
Update your spending and earnings as you go and keep a close eye on your financial standing/patterns. Don’t be afraid to move things around as you find your rhythm, just remember that adjusting one thing in your budget very likely affects multiple other areas, so adjust accordingly.

Implementing these practices as soon as possible will make your business journey so much smoother, and your CPA proud! What are some budgeting habits you’ve found to be imperative to your business’ success?