Avoiding Budget Mistakes
It’s important to realistically estimate your expenses and spending when developing a budget. We’ve listed a few small business budgeting mistakes and some advice on how to prevent them.
1. No goal setting. It’s practically impossible to prioritize expenses without setting goals for the future. It’s essential to carefully specify your financial and business goals and determine what need and you would like to accomplish with your business.
2. Miscalculating costs. Every business incurs additional or related expenses that don’t get accounted for in the budget. One instance is purchasing new equipment but not including additional software. Also, you would need to consider the time and money it takes to train your staff and maintain the equipment.
3. Failure to revise the budget. Don’t put off updating any anticipated expenses whenever new events have an impact on the business. A few times each year, plan some time to examine your budgeting estimates and compare them to the actual money you spent. Then adjust your budget accordingly.
For helpful advice on setting up a budget that will work for you, set up an appointment with one of our certified public accountants today at 608-210-1200. We look forward to meeting your accounting needs and making improvements to your budget.