To Budget or Not to Budget

If your business is growing and changing is it wise to budget?  Many small business owners are more involved with running the business than looking at financial statements.  It is good to spend time with your Budget.  Remember you are in business to make a profit.  So along with deciding what to do with the money you are going to make, plan how you are going to make it.  This is a good time to make sure your selling price and cost are accurate, giving you the correct profit per item.  Then make sure all your fixed cost like rent and salaries are covered.  If your budget is seasonal do not divided it by twelve. Make sure the monthly budget matches the slow and busy times of your company.

The budget should be a financial representation of your goals for the year.  Most accounting systems allow for easy inputs to the Budget.  This is your scorecard to see how you are doing throughout the year.

If your business is consistent, you can use last year as a guide.  Remember,  if you are growing and changing spend time on your 2012 Budget.

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