Follow us:

  • facebook
  • twitter
  • linkedin
  • youtube
  • instagram



Why Budget? Results Are More Easily Achieved When You Set Goals

Feb 26, 2021 9:31:00 AM Kathy Dise Budgeting

budget planningBudgets can feel like a chore or a forgotten item on the to-do list when you are caught in the throes of running your business. But, how often do your goals come alive if you don’t have a plan or if you don’t measure your results?We view the budget as a living, breathing progress report where you can see your business’s plans coming to fruition, and more importantly, see when you need to adapt.

Tips on making your budget goals come to life:

1. Prepare a Profit & Loss by month for the current year. Export to excel.
    • Look at trends
    • Highlight seasonal changes
    • Take a close look at a recent month that is representative of current Income & Expenses (often November and December have unusual expenses and/or income)
2. Start with your projected revenue sources:
    • Do you expect revenues to be the same, grow at a steady rate or have seasonal peaks and valleys?
    • Enter sales for next year by month on your spread sheet, based on your insights from your review of this year.
    • Adjust sales for new products and new clients.
3. Factor in annual spending:
    • Cost of Goods/Materials – Is there a % of sales expectation?
    • Employee costs & payroll – How many bodies to you need to make your sales budget?
    • Marketing
    • Rent/Mortgage
    • Utilities
    • Other fixed & variable costs
    • Fill in your expectations for the next 12 months
4. Check projected profit
    • Are you making at least 10% of income?
    • Adjust income and expenses until you have a viable profit to sustain your business.
5. Enter your budget into your financial software by month.

Monitor Weekly!

A LOT can happen daily and weekly in your business. Look at your budget often and make corrections quickly before you are way off course. Assess your progress of planned goals versus actual results on a weekly basis.

  • Set small goals each week that will help you achieve your budget such as blogging weekly or improving customer satisfaction by initiating a new idea.
  • Are expenses higher than expected?
  • Is my Profit Margin on track for a successful year?
  • Adjust your budget to reflect the realistic state of your business as needed.

You set out to work for yourself for many reasons. Weekly review of your budget will help you to stay nimble, react and grow to achieve your goals. If you need help building a budget, or ideas for measuring your plan against your reality, we are here to help!

New Call-to-action

Kathy Dise

Written by Kathy Dise

Kathy has over 30 years experience helping small businesses succeed. As a commercial lender, commercialization expert and now as a QuickBooks diamond level advisor, Kathy understands the challenges small business owners face. Her experience helps business owners quickly accomplish their financial goals. As the owner of BudgetEase, Kathy works with clients to develop a plan to efficiently process 1,000s of small transactions so owners can make informed decisions. She lives in Shaker Heights, OH with her husband Ralph and enjoys golf, curling and walking in Cleveland’s fabulous Metro Parks.