Small business budgeting is one of the trickiest parts of the job. Sometimes you do not think you need it; other times you think you are doing enough when you are not. The most challenging part about is that there is very little room for mistakes when it comes to budgeting. Every mistake can literally cost you; letting it get out of hand has the potential to put you out of business.
There are three most common mistakes in small business budgeting:
- Not having a budget at all
- Having a budget, but not strictly following it
- Forgetting to include essential items
As far as “essential items,” some are more commonly forgotten or neglected than others.
Small Business Budget Must-Haves
Which of these items have you forgotten?
- Taxes. One too many small business owners forget about their taxes. Whether it is because you have gotten yourself knee-deep in small business tasks, or are just perpetually under the impression that the tax season is far away, not prioritizing your taxes in your budget will be more trouble than you can imagine.
- Emergency Funds. In a small business, anything can happen. Your office might need repairs; or you might suddenly need to expand, or invest in a new piece of equipment; or a new project might require the services of a consultant. These things can arise any time, and not having any emergency funds in your budget can be disastrous.
- Reserve Funds. Businesses are all about balancing your income and your expenses. Some days, you might have zero revenues, but the expenses are always there. This is especially true when your small business is just starting out and you are still building your brand. Without a contingency fund for unexpected expenses, you could be heading for disaster, not only for your business, but also for your personal finances.
Why You Need Professional Help for Your Small Business Budget
Financial mistakes are some of the most common reasons businesses fail. Poor budgeting is one of the many forms of financial misjudgement that could damage your business, and here is where a professional financial planner can help you:
- Accuracy. The objectivity in their perspective will allow them to see things you could overlook because of your personal attachment to your business. Also, professional financial planners can focus on a specific issue in your business, so they are less likely to make mistakes; plus, they can help you strictly follow your budget.
- These financial experts can help you create not just a comprehensive and practical budget for your business; they can also help you manage your expenses.
- You will not have to worry about overspending before your next big cash need or being late in filling. Your financial consultant can help you get things in order in a timely fashion.
- Just because multi-tasking is commonplace in small businesses does not mean you can or should just accept all the extra tasks at hand.
Interested in getting some professional help for your small business budget? Turn to one of San Diego’s most trusted! Turn to Class-Advisors! Visit our website today or call (619) 282-7126 to get a FREE consultation!