Sticking to your small business budget
Read time: 3 minutes
You’ve worked hard to create a budget for your small business. But if you’re worried that the day-to-day challenges of running a business will make it impossible to stick to the budget, take heart from a 2018 survey by B2B research and ratings site Clutch.co, which found that an impressive 50 percent of small businesses spent right about what they budgeted for a given period.
See there…it can be done. To help, here are a few hints for making sure that your newly created budget is one you won’t have trouble following:
Use accounting software/apps
It may be cheaper to use a spreadsheet program you already own, but it’s a lot of work to input information and formulas. The right accounting software makes it easy to monitor income and expenses—and easier to collaborate with your accountant.
Pay yourself first
When a budget goes awry, the owner’s paycheck is often the first thing to be sacrificed—which can set up a whole “robbing Peter to pay Paul” chain reaction as you try to survive. Keeping your salary in mind can be a good cue to not overspend.
Don’t base your budget on annual figures
The larger a number is, the more impossible it can feel to manage. A weekly or monthly budget is not only less overwhelming, but it also allows you to quickly see what doesn’t work so you can make adjustments to keep spending under control.
Track invoices and expenses daily
Daily tracking helps you see your spending patterns at a glance. If you wait until the end of the month to enter information, you could miss or forget to input valuable information. A few minutes each day will save you hours of catching up on data entry later.
Involve your employees
Budget compliance affects their livelihood, too. Let them know how they can help you reach your goals and when the company belt needs to be tightened. They can also help pinpoint day-to-day inefficiencies that can improve the budget.
Keep business and personal transactions separate
Banks and credit unions offer affordable small business checking options. Open a separate account for your business to maintain an accurate picture of your business finances.
Budget for a treat now and then
A budget isn’t a punishment; it’s a blueprint for the future. Running a business can be stressful, so whether you’re the only employee or you have a staff, allow some funds for fun. Even an inexpensive ice cream run can nudge spirits upward.
Revisit your budget—often
As your business grows and evolves, so should your budget. It takes a bit of time (and some trial and error) to learn the patterns of your own business trends. Every time you learn something to do or not to do, take a moment to reassess.
You’ve done the hard part by creating your budget. The blueprint for the growth of your business is in your hands, so now it’s time to stick to that blueprint as you build the business of your dreams.
Need help with your small business budget? Contact us today! Simply click the GET IN TOUCH button and complete the brief form or give us a call. We’re here to help.