Show Me Your Budget

Thursday, 12 February 2009 11:50

Your budget is a reference document. It is a living, breathing tool to help you plan how your money is coming into your business, and where it is going. See this worksheet for a guide to developing your budget.

It is better when you are first planning your budget to be more conservative than not with your numbers. Underestimate your income, and overestimate your expenses. You will be better able to adapt to emergencies when you give yourself more breathing room on either side of the equation. Adding an emergency cash fund makes good sense in this regard as well.

Review your budget at least once a month, and make corrections where it is needed. It is better to adapt the budget a little to changing trends of your finances than to ignore the needs of your organization to stay competitive. Note the changes in your budget and review them when drafting future budgets. Learn from your company's experiences and plan for them to occur going forward.