As a business owner you know budgeting is important, but do you really understand how crucial it is to know what income is coming in, what expenses are going out and how to use this information to set goals to better your businesses finances? Let’s take a look at how using a budget can set your business up for success.
Benefits of a Budget
A budget will help you clearly understand how your business is performing and allow you to set attainable goals. Having a budget will help you:
- Avoid taking on debt – knowing you have enough money coming in this week or this month can ensure you avoid getting into debt unnecessarily
- Pay down debt you already have – if you already have debt, you can make a plan based on your income and expenses to get out of debt
- Track how much money you are making weekly, monthly, quarterly and yearly – this will help you stay on top of your budget and ensure there are no surprises
- Budget for new expenses – knowing your expenses and current cash flow can help you easily plan for new expenses such as new hires, more marketing spend or anything else imperative for your business
- Plan for short-term and long-term goals – knowing your monthly and yearly income vs. expenses will help you set realistic goals for the months and years ahead
This may sound overwhelming but as long as you stay organized, it doesn’t have to be! Once you have an idea of your budget you can use it to cut expenses, add new hires, increase your marketing spend and more. The positives of having a budget outweigh the work it takes to get one started. Fortunately, we’ve included a weekly and monthly budget template to get you prepared in the meantime.
Weekly and Monthly Budget Templates
Our weekly budget template allows you to track week over week what expenses you have going out and what income you have coming into the business. Our monthly budget template helps you track recurring expenses each month and any other additional monthly budget changes. You can organize the template with a variety of categories to make tracking even easier. Lastly, the budget template helps you track your savings balance.
Download our weekly budget template here.
Download our monthly budget template here.
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