Budgeting for the Future: It is very good practice that after year end is complete, you review your numbers and create a budget for the current year.
Based off of the numbers, you will have an idea of your profit and loss and it will be fresh in your mind. Look at what possible expenditures could come up throughout this year and add those into the budget.
There will always be some expenses that come up unexpectedly, but add some money into the budget for that as well, so that won’t catch you off guard either.
Take some time after year end is complete and make your budget, you will be glad you did.
Questions to Ponder:
Are you currently creating a budget?
If so, do you notice that you stay on course with it, or you deviate from it a lot?
If you deviate from it, set something up that is more realistic that suits your business better.
Make sure you put some incentives for staff and clients in the budget!
https://www.nerdwallet.com/article/small-business/how-to-create-a-business-budget
https://bench.co/blog/accounting/business-budget/
https://www.infoentrepreneurs.org/en/guides/budgeting-and-business-planning/
