Have you planned your businesses budget yet?
The beginning of the year is the best time to set out your budget. It is important to make sure you review it monthly.
If you haven’t already set up your business’s budget for 2014, it’s not too late!
Page, Lobo, Costales and Preston would like to share our 5 ways to getting started on your business’s budget.
Start With A Spreadsheet – Before you buy a business or open a new business, create a spreadsheet to estimate what percentage of your revenue you will need to allocate toward raw materials and other costs. You should also include any rent, taxes, insurance and other overhead into your spreadsheet.
Allow Some Slack – Whatever you estimate your business will generate in revenue, make sure you have a cushion on that amount. It is important you have more than enough money put away or coming in before you expand your business or take on new employees.
Cut Costs Where You Can – If you come across a tight month financially, you will need to cut costs where you can. Try waiting to make purchases until the next billing cycle or take advantage of payment terms offered by suppliers and creditors.
Review Your Business Regularly – Of course you want to draft a budget yearly, however small businesses should do this more often. Since business can be volatile, planning on a monthly basis will be very beneficial.
Shop Around For The Best Deals – It is always a good idea to get quotes from other suppliers. If you are able to receive the same service and quantity at a lower price, why not switch to a different supplier? Do this on a quarterly or yearly basis.
If you have questions about budgeting for your business, please call our office, Page, Lobo, Costales and Preston, at 951-461-2500.