Do I REALLY need a Budget for my Business?

Posted on November 17, 2010

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Have you ever driven a car and the fuel gauge or speedometer was NOT working?  You were never sure when you would run out of gas or get a speeding ticket.  Well, operating your business without a BUDGET is just like driving without a working fuel gauge.

Why do I Need a Budget?

Having a business budget is an essential part of running a business.  It allows you to see how well your business is doing financially.  A good working budget is just like having a working fuel gauge.  You can measure how much money you have spent and how much money you have left BEFORE you run out.  So many business owners are running their business by the seat of their pants.  They are “clueless” about how much money they have taken in or how much money they have spent.  Well, a good budget can solve that problem.

Take a Look Into The Future

When you prepare a business budget, you are looking into the future and saying “This is Where I Want To Take My Business”. Preparing your budget also forces you to consider HOW you are going to get there!!  Your budget can be used to gauge if you are accomplishing your business goals.  Each month, you can compare your actual income and expenses to your budget to see if you are on track to reach your goals.

What If I Don’t Have a Business Budget?

The new year is FAST APPROACHING!!!  If you do not have a business budget for the upcoming year, get with your CPA TODAY to develop your budget.

Next post, we will discuss “Tips for preparing a budget for your business”.

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