As tax season is almost upon us again, many business owners have their budgets on their mind… and rightly so! However, unfortunately, all too many business owners don’t keep a carefully controlled budget throughout the year and find themselves with more than a few nasty surprises at tax time.
If you, like many business owners, don’t always adequately plan your budget or only really engage in tax planning alone… now is the time to make a change!
At Lawrence, we know that planning for all aspects of your business and that preparing a budget for the upcoming year (alongside tax planning) is one of the most beneficial things that you can do for your business. And whether you’re the owner of a large corporate business or a smaller family owned business, you can experience some immediate benefits of a business budget.
Take a moment now and consider your business… what would the implications be if you weren’t able to meet your obligations for payroll, equipment, training, suppliers, rent/mortgage, loans, professional services, advertising/marketing or insurance?
And this is just a short list that accounts for keeping your business open, let alone growing or expanding your business in any capacity.
Without budgeting, your business may be missing out on vital sales opportunities or even make poor decisions and drift your business in the wrong direction.
Once you have created your first budget, you can then put it into use and get a real sense of how it can help keep your finances on track… from there, you may want to then lay out your spending plan or budget for further down the road. This will allow you to easily forecast for where finances may be tight and where you may have extra cash flow. Another benefit to anticipating the highs and lows of your finances is that you’ll know how much you’ll need to save/borrow and where you can spend on things like a new vehicle, staff retention perks etc.
And, of course, a budget is an adaptive plan – it should never be a ‘done once, never reviewed or revised’ document. It should be regularly reviewed and adjusted to account for any shortfalls (and to allow it to adapt as your business changes to meet market demands).
We cannot stress enough how important it is. As Hilary Hinton “Zig” Ziglar famously said, “If you aim at nothing, you will hit it every time!”
At Lawrence, our diverse team of specialists will help you understand your business books and plan for the future.
Contact us today for an obligation-free chat about your business budget.
This article is general information only. It does not give business, accounting, taxation, financial planning or other professional advice or service. It does not consider your specific situation, objectives or needs and if personal advice is required, a detailed analysis of your particular circumstances would need to be sought. Please see our Privacy and Disclaimers page for further information.