Keeping track of your business expenses can be quite a challenge for many business owners. You may be a chef, plumber, attorney or medical professional. Your service or product most likely has nothing to do with budgets and forecast. Even so, these words are critical to managing your business for the long-term.
A budget is important to determine how much money you need to earn in order to cover the expenses you expect to have in a given period. Salary, supplies, and utilities are just a few to consider. A budget represents your target while a forecast helps you to plan for changes that you become aware of after the budget is set. As you reconcile actual expenses and adjust for significant changes to your spending a clearer picture of your company’s financial will start to take shape.
It is preferred to put this in place from the very beginning, but it can be implemented at any time. Current payroll, recent receipts, invoices and statements are a great starting point. In addition, costs for upcoming projects should be factored in. The more you can account for the better off your budget and financial planning will be. This is very important to initiate for your personal expenses too.
Engage Forward LLC can work with you to create and understand your professional and personal budgets, forecasts and other financial tools you will need to have to grow your business.