Why Is A Budget Important To The Success Of My Business?

Mark McKinley | October 18th, 2013

The end of the year is fast approaching. Before you know it, Jan. 1, 2014, will be here and another business year is at hand. So… have you started planning and budgeting for your 2014 business year? If you haven’t, don’t wait any longer. The sooner you get your budget in place, the better idea you’ll have of what you can do in the year ahead. 

A Budget Is A Necessity, Not A Chore

As a kid growing up, I had chores. Chores were never something I enjoyed doing, but it helped keep the house clean or it kept my pet alive. At the time, I looked at chores as simply “chores.” I didn’t totally understand how these chores were actually necessities in life. I think many times, people look at budgeting as a chore. Something you don’t enjoy doing, but do it because you have to or should. Don’t look at budgeting as a chore. You should consider it a necessity, something you need to do to improve and best manage your company and its finances.

Yes, it’s true – budgets take time to put together. There are many items to consider when developing a budget, and if you want to do it the right way, it’s going to take dedicated, focused time. Having a budget forces you to plan ahead and know what you need financially down the road.

How A Budget Can Work For You

Budgets can come in all shapes and sizes. You need to figure out what kind of budget works for your business. For some businesses, a 13- or 14-week rolling budget may be the best approach to help you anticipate the cycles of your business. You’ll also need to know what items are needed for the budget. Once you identify the appropriate components for your budget, you’ll be able to have a better grasp on what you can and can’t do in the weeks and months ahead. And in the end, you’ll have a budget that works for you.

How a Budget Works for Your Business Nov 2013

Risk Of Being Inflexible With Your Budget

We’ve all probably followed a map at one point or another, and along the way we discovered we had to take a detour and veer off the map just a bit. A budget is just like a map – it’s a financial roadmap for your business. And just as we sometimes have to detour when we’re driving somewhere, you may find that you have to take a detour in your budget.

You may have a once-in-a-lifetime opportunity in front of you and when you look at your budget, you realize that your budget doesn’t allow for this purchase. If you decide to stick with your budget, you could be losing a great business opportunity that you may never encounter again. That’s why it’s so important to keep in mind that while your budget is there to keep your finances on track, you have to remain flexible in how you approach your budget.

Need Help With Your Budget?

A budget is a great (and necessary) tool for businesses to realize their full potential. Without a budget, your business is like a rudderless ship, not heading in any specific direction. If you don’t have a budget and need help figuring out where to start, contact Rea & Associates. Our team of Ohio accounting professionals can help you get your finances in order and make the most of the money your business is bringing in. Don’t delay and start developing a budget today!

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