Keep Your Business Budget on Track

by Sean Dever | Sean Dever CPA & Associates

Do you find it tricky to maintain a budget for your business? Here’s how to avoid three of the most common budgeting mistakes and take control of your company’s finances.

When it comes to creating a budget, it’s essential to estimate your spending as realistically as possible. Here are three budget-related errors commonly made by small businesses and some tips for avoiding them:

  1. Not Setting Goals. It’s almost impossible to set spending priorities without clear goals for the coming year. It’s important to identify, in detail, your business and financial goals and what you want or need to achieve in your business.
  2. Underestimating Costs. Every business has ancillary or incidental costs that don’t always make it into the budget–for whatever reason. A good example of this is buying a new piece of equipment or software. While you probably accounted for the cost of the equipment in your budget, you might not have remembered to budget time and money needed to train staff or for equipment maintenance.
  3. Failing to Adjust Your Budget. Don’t be afraid to update your forecasted expenditures whenever new circumstances affect your business. Several times a year you should set aside time to compare budget estimates against the amount you actually spent, and then adjust your budget accordingly.

In regards to maintaining your budget, tech tools can help you manage your day-to-day expenses and many can give you a big picture view of your budget, finances and credit score. There are budget apps available for iPhone, iPad and Android to help you achieve your financial goals with ease.

Express Payroll is part of Sean Dever, CPA & Associates, an accounting firm which provides services such as: Small Business Accounting; Tax Preparation & Planning, Business Valuation, Succession Planning and Payroll Service. Sean focuses the firm’s services towards the children’s sports education industry, including swimming, gymnastics, dance and cheerleading. For more information, email sean@devercpa.com or visit www.devercpa.com.