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Budget Preparation

Bookkeeping budgets Melbourne

Good for you. Your small business seems to be tracking along according to plan; you have acquired some new customers, sales are up and your bottom line looks healthy enough.

But have you got enough funds in your bank account to take care of all your immediate expenses? Can you pay your suppliers and your staff this month, as well as cover the cost of your overheads and meet your compliance obligations to the ATO?

Are you sure?

And what about next month, next quarter or at the end of the year? Yes, no, maybe?

What if a piece of important equipment breaks down and you need to invest in costly repairs or even purchase a new one?

All of a sudden that bottom line may not be looking as healthy as it was a minute ago.

It’s almost impossible to be confident about your financial commitments if you haven’t set a budget for your expenditure.

Budgeting for success

Many small businesses don’t understand the importance of budgeting and fail to make provisions for expected and unexpected expenses.

So, why is it important for every business to set a budget?

A budget is the success plan for a business.

A budget helps you plan to reach goals within your business, making sure you are earning the income you want and are in control of the costs related to that income.

Move your small business forward with confidence

A budget is a way of thinking ahead financially. While management reports are historical (focussing on the income you have received and the amount you have actually spent), budgeting looks forward.

Your budget is your financial plan of income, expenses, and profits. The most ideal type of budget rolls forward on a 12-month cycle.

It predicts the expenses you expect to incur and the income you hope to bring in, and is intended to minimise the risk of being faced with unanticipated expenses or lower-than-expected sales.

Ask us how we can cover you and your business against life’s uncertainties by drawing up a budget today. Call us on (03) 9585 2255 or send us an email via the enquiry form.