Being the owner of a small business has its fair share of joys and obstacles. One common challenge is the proper budgeting of your business. It acts as a roadmap to understand where you are going with your business – from tracking your cash flow and business expenses to analysing the revenue you need to keep your business growing.
Budgeting allows you to keep your finances in order and set your business up for success. If you need some help in drafting a budget, here are some tips to guide you along.
1. Prioritise your business expenses
Make the way you spend a priority to ensure the success of your small business. Using the data gathered from your record of transactions, examine how much you are spending for your expenditures and the value they provide for your business.
Once you’ve gained a better idea of what your business truly needs, you can then determine which expenses are vital to the company and which ones can be put off for the time being. Be sure to track your expenses by managing your accounting books so you can monitor your business spending with ease.
To help simplify your bookkeeping responsibilities, our team at Ackenting Group offers accounting and bookkeeping services to help get your company’s books up and running. With years of experience, we will keep your accounting books accurate, organised and up-to-date to you can plan strategic business decisions for the future with confidence.
2. Monitor your sales cycle
It is common for businesses to face slow progress and grow busy over the course of the year. If your company has an off-season, it’s crucial for you to be prepared when the time comes. This can include having extra cash on hand so you can overcome any critical situation if it arises.
Use this slower period to plan the next step you’re going to take and maximise your profit for the upcoming sales. For instance, you can use this time to improve your marketing efforts and strategise on how to gain more leads for increased revenue.
3. Utilise modern technology
In this modern era, technology is seen as essential to support and enhance your business opportunities and operations. They don’t have to be expensive either; some tools are economical, simple and convenient for small businesses that are just starting. Whether it’s to help you improve teamwork and collaboration or connect to a wider audience through social media, technology can help a business grow.
For instance, there are accounting tools and software that can improve productivity and cut down the daunting work to minimal time for better efficiency. But if you wish to delegate this task to the experts, engage in an accounting service provider that can help you streamline the accounting processes. As one of the best audit firms in Singapore, Ackenting Group offers a full suite of corporate solutions. We use accounting software such as MYOB, Quick Books, and Oracle, depending on your needs. Outsource your accounting to us and rest assured that your transactions and financial statements are well taken care of while you focus on your business strategies.
4. Update your budget regularly
Your budget isn’t static – it will undoubtedly evolve and change as your company’s expenses and profits fluctuate. It is important that you revisit your budget so that you will know what you need to change. Consider how your company had performed in the previous month, what your sales forecast is for future months, and whether you need to budget for extra inventory or staffing.
You will also need to update your budget for taxes. Whatever your business is earning would be subjected to the local corporate tax, so you will need to calculate your taxable income and how much you are left with. All in all, this will give you a better understanding of your budgeting plan and enhance your financial decision-making.
Conclusion
There are a lot of factors to consider when budgeting for one’s business. This process can be overwhelming initially, but as time passes, experience and industry intuition can make the task much more manageable.
Enlist the help of professionals so you can take control of your finances and make smart business decisions. As an award-winning professional accounting firm, Ackenting Group goes beyond traditional accounting and provides only practical solutions. From taxation to company incorporation services, we serve with value, care and passion.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.
