A well-planned, realistic budget makes it easier to manage cash flow, and it is a tremendous help when you’re planning for your company’s future. With reputable online budgeting tools such as QuickBooks, creating a balanced business budget is simple. Gather these key pieces of data, and the software will walk you through the entire process.
- Projected income: Refer to income statements from previous years, as well as industry trends to make sound financial projections
- Estimated cost of goods sold: If your business sells products, record your current inventory before creating a budget, and determine the cost of each product type
- Expected expenses: Include routine operating costs, such as utilities and office space, along with any foreseeable repairs or upgrades
Organise your business budget with income and expense categories that suit your company, and remember to review and update the plan often.