Budgeting Essentials

Last week I talked about “What is Cash Flow?”  If you missed that post, you can review it HERE.  This week’s post is “Cash Flow - why do I need a budget?”  Good cash flow management involves more than just taking care of the cash you have. You need to look at what is going to be coming in, too.  In order to do that you need a good cash flow projection built from for your budget.   Learn more in this week’s blog.

Last week I talked about “Cash Flow Issues - Are you thinking big enough? Part 3.”  If you missed that post, you can review it HERE.  This week’s post is “What is Cash Flow?”  You often hear that small businesses fail because of lack of “Cash Flow”.  But what does “Cash Flow” really mean to a small business owner from a practical standpoint?  Learn more in this week’s blog.

Last week I talked about “Cash Flow Issues - Are you thinking big enough? Part 2.”  If you missed that post, you can review it HERE.  This week’s post is “Cash Flow Issues - Are you thinking big enough? Part 3.”  Do you find yourself reluctant to update your pricing because you are afraid you will lose customers?  While you need to be aware of the market value of your service, you pricing also needs to reflect the value of what you are delivering.  If you are delivering above average services, you shouldn’t be charging bargain basement prices.  Learn more in this week’s blog.

Last week I talked about “Cash Flow Issues - Are you thinking big enough? Part 1.”  If you missed that post, you can review it HERE.  This week’s post is “Cash Flow Issues - Are you thinking big enough? Part 2.”  Do you find yourself resistant to change because you tried something and it didn’t go well?  You need to examine your procedures periodically to make sure they are efficient and effective.  You don’t want to limit your cash flow by using outdated procedures that cost you extra time and money.  Learn more in this week’s blog.

Last week I talked about “Cash Flow Issues - Overspending.”  If you missed that post, you can review it HERE.  This week’s post is “Cash Flow Issues - Are you thinking big enough? Part 1.”  Are you limiting yourself with your thinking?  Do you undervalue your services?  These are things that will limit your growth and your cash flow.  Learn more in this week’s blog.

Last week I talked about “Cash Flow Issues - Tracking your finances.”  If you missed that post, you can review it HERE.  This week’s post is “Cash Flow Issues - Overspending.”  When you don’t do your books regularly and don’t have a well prepared budget to remind you of your upcoming expenses, you don’t really know what you have available to spend.  If you have an annually billed payment coming up next month, you don’t want to spend the money this month on something else that could have waited.  Your budget helps you remember these expenses..  Learn more in this week’s blog.

Last week I talked about “Cash Flow Issues – failing to plan.”  If you missed that post, you can review it HERE.  This week’s post is “Cash Flow Issues - Tracking your finances.”  Failing to keep financial track of your business on a monthly basis is another financial reason that many businesses fail.   It is important to do your books every month when you are in business.  This is a function that many small business owners wait too long to seek help with or overestimate their ability to complete.  You can’t make good financial decisions without knowing the state of your finances.  Learn more in this week’s blog.

Last week I talked about “Cash Flow Issues - not enough start up money.”  If you missed that post, you can review it HERE.  This week’s post is “Cash Flow Issues – failing to plan.”  Failing to plan properly is another financial reason small businesses fail.  This sounds like a non-financial reason, but it has a big financial component to it.  If you don’t take the time to develop a well prepared budget, you haven’t properly planned your finances for your business. Learn more in this week’s blog.

Last week I talked about “Cash Flow for Small Businesses.”  If you missed that post, you can review it HERE.  This week’s post is “Cash Flow Issues - not enough start up money.”  One reason small business fail is that they don’t have enough money to get themselves through the start up period.  You need to properly anticipate how much money you are going to need to get your business off the ground. Learn more in this week’s blog.

Last week I talked about “What about the cloud?”  If you missed that post, you can review it HERE.  This week’s post is “Cash Flow for Small Businesses.”  Lack of cash is a common reason that small businesses fail.  Being able to predict your cash balances helps you manage your business's finances.   Learn more in this week’s blog.

Last week I talked about “It is never too early to start budgeting!”  If you missed that post, you can review it HERE.  This week’s post is “What about the cloud?”  Many software companies are moving their software to the “cloud”.  They use convenience as a big part of their sales pitch.  But is what you give up in security worth the “convenience” of having your financial information in the cloud?  Learn more in this week’s blog.

Last week I talked about “How does a Financial Plan (budget) benefit a Small Business?”  If you missed that post, you can review it HERE.  This week’s post is “It is never too early to start budgeting!”  Most people think of budgeting as an end of the year activity.  But the best way to create a budget is to collect your budget information as you are going through the year.  Learn more in this week’s blog.

Last week I talked about “Good Financial Statements use Matching!”  If you missed that post, you can review it HERE.  This week’s post is “How does a Financial Plan (budget) benefit a Small Business?”  When you are running a small business, sometimes you can overestimate your memory.  Even though you are capable of keeping your finances in your head, often you have enough other things going on that push the finances out.  Then a financial decision comes along that is going to affect how much cash you have on hand.  Should you make that decision from your memory?  Learn more in this week’s blog.

Last week I talked about “Is Why does my accountant seem so formal?”.   If you missed that post, you can review it HERE.  This week’s post is “Good Financial Statements use Matching!”  One of the rules that accountants have to follow is the Matching principle.  Following this principle helps keep your income statements accurate and helps your decision making process.  Learn more in this week’s blog.

Last week I talked about “Is your small business is on track?  Check your budget”.   If you missed that post, you can review it HERE.  This week’s post is “Why does my accountant seem so formal?”  When it comes to knowing whether or not you make money, there are rules that you have to follow. Good Accountants follow those rules.  The structure that comes with those rules becomes a habit.  Learn more in this week’s blog.

Last week I talked about Be Prepared – Have an Emergency Fund.  If you missed that post, you can review it HERE.  This week’s post: “Is your small business is on track?  Check your budget”.  You seem to be making money.  At least that is what your income statement says.  That is good, if you have included all your expenses.  You can know for sure if you have a well prepared budget.  Learn more in this week’s blog.

Last week I talked about Budgeting – Review Regularly and Adjust as Necessary.  If you missed that post, you can review it HERE.  This week’s post is Be Prepared – Have an Emergency Fund.  Your business is no different than your personal life.  Unexpected things come up that you need to pay for quickly.  The Boy Scouts have a motto: Be Prepared.  That applies to business and life, not just Boy Scouts.  Learn more in this week’s blog.

Last week I talked about Budgets are the owner’s responsibility, not the Accountant’s.  If you missed that post, you can review it HERE.  This week’s post is Budgeting – Review Regularly and Adjust as Necessary.  Once you have completed your budget, you are not done working with it.  You need to compare the budget to your actual results.  Then your variances will show you where you may need to adjust your operations.  Learn more in this week’s blog.

Last week I talked about Put more money in your pocket - by not paying interest.  If you missed that post, you can review it HERE.  This week’s post is Budgets are the Owner’s responsibility, not the Accountants.  Many people think that a budget is something that is your accountant’s responsibility.   While the accountant may put everything together for you, in order to have a well prepared budget, you need to be the one who is responsible for what goes into that budget.  Learn more in this week’s blog.

Last week I talked about What is a Budget and Why Do I Need One?.   If you missed that post, you can review it HERE.  This week’s post is Put more money in your pocket - by not paying interest.  One cost saving area that small businesses miss is borrowing money and paying interest on their equipment purchases.  While it may seem convenient to borrow the money, there is a cost you have to consider.  This is an area where you can put more money into your pocket.