The Business of Budgeting your Business…
A budget? So, who needs a budget? You do-that’s who.
Unlike the government we actually need to balance our checkbooks. A budget allows you to identify spending habits, and allows your business (or personal) to make necessary adjustments and changes.
Don’t just be in business to stay in business-be in business to grow your business
There are many areas to delve into for a complete business plan, for practical purposes we will stick to budgeting and a few essentials.
Check list: All of this and more inside my 16-award winning book:
“the sexy little book of finance III” 2 books in one-Personal & Business
- Your budget should be on a spreadsheet in excel or another format so you can update.
- Personal budget and Business information should be part of your routine.
- Make copies of all serial numbers of vehicles, laptops, cell phones, or any other important information of equipment.
- Copies of any operators or employees who have access to any equipment, vehicles, should have their drivers license and insurance so you have the information and can check any expiration dates.
- Credit card numbers, expiration dates, and all employees who assigned a card
- Record of all policies or contracts
- Starting inventory and ending inventories (daily, weekly, monthly, and annually) or as deemed appropriate for your business model
- Bank loans, all financial information stored & backed up daily on a private server or encrypted cloud program
- ADD your own categories.
You should have a full marketing plan (in writing), websites with SEO search, game plan how are you going to market your product or services – internet-seminars-mailers-email campaigns-workshops-etc. If you are looking for money from a bank or lending institution all this will be necessary. Everybody thinks they can apply and get approved in 15 seconds with 3 little questions and nothing else to provide…SORRY, little things like bank statements, tax returns, personal financial statements (free on our website) just to mention a few things. You can see what else may be required on our website.
Now back to budgeting…
Month _________________ Beginning Cash Balance $ ___________________________
Category Estimated Budget Actual Difference
Revenue/1099 _______________ _______________ _______________
Accounts Receivable _______________ _______________ _______________
Investment Income _______________ _______________ _______________
Interest Income _______________ _______________ _______________
Other _______________ _______________ _______________
Total Actual Income: _______________ _______________
EXPENSES
Rent/Lease _______________ _______________ _______________
Loans _______________ _______________ _______________
Accounts Payable _______________ _______________ _______________
Inventory Purchase _______________ _______________ _______________
Equipment Purchases _______________ _______________ _______________
Office Supplies _______________ _______________ _______________
Cell Phones _______________ _______________ _______________
Phone/Internet/Fax _______________ _______________ _______________
Advertising _______________ _______________ _______________
Printing _______________ _______________ _______________
Postage _______________ _______________ _______________
Payroll _______________ _______________ _______________
Payroll Taxes _______________ _______________ _______________
Health Insurance _______________ _______________ _______________
Repairs/Maintenance _______________ _______________ _______________
Automobile Expense _______________ _______________ _______________
Gas/maintenance _______________ _______________ _______________
Auto Insurance _______________ _______________ _______________
Business Insurance _______________ _______________ _______________
Accounting fees _______________ _______________ _______________
Retirement contributions _______________ _______________ _______________
Web hosting _______________ _______________ _______________
Other _______________ _______________ _______________
Total Actual Expenses $ _________________________
Total Income________________ minus Total Expenses______________ = Ending Balance_______________
Be Prepared-Be Informed-Be Successful
The last time I got instant gratification – I got food poisoning
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