Small Business Budgeting: How to Keep on Top of Things
One of the scariest things about starting your own business is having to take care of all the finances yourself. However, even if you’re notoriously terrible with numbers, there are some simple things that you can do to make budgeting a breeze.
The first thing to remember is to keep track of things as you go along. Although many people seem to do it, it’s definitely not a good idea to leave all your accounting until the last minute. Instead, make sure you keep track of all your expenditures and earnings as they come in and go out. Not only will this be a real relief when it’s time to do your taxes, but there are also other benefits to taking this approach.
By keeping a note of your accounts as they happen, it’s easy to get an overview of your financial situation, and make any adjustments that you might need to. You can see what expenses you might be able to cut down on, and work out which areas you should look to improve.
Another important tip is to look at your budget every month and set new goals for the coming weeks. Are you earning less than you expected? Try spending more on marketing and track the results in next month’s budget. Having cash flow problems? Track how long money is taking to come in from jobs or clients, and see if there are steps you can take to speed things up.
The other great thing about this approach is that it allows you to stay flexible, and to respond quickly to challenges whenever they crop up. If you do your accounts and budgeting just once a year, you won’t see problems coming until they’ve really taken hold. But by micro-managing your budget, you can nip any potential pitfalls in the bud.
Keen to keep on top of your budgeting? One of the best ways that you can take control is by using our Expend app. The Expend solution combines an app and payment card, this clever piece of kit allows you to monitor your transactions in real time, keeping everything you need for easy budgeting in one place. It also fully integrates with your Xero accounting software, which not only saves you time, but also a lot of heartache every month when you do your expenses.