Budgeting Essentials

Last week I talked about Be conservative with your estimates. If you missed that post, you can review it HERE.  This week’s topic is keep your monthly cash flow positive. Planning your cash flow may seem to be something that you can’t do. But with a well prepared budget, you can avoid many cash flow issues before they happen. 

Last week I talked about working on income early.  If you missed that post, you can read it HERE.  This week’s topic is be conservative with your estimates.  One big temptation you need to avoid when preparing a budget is being too aggressive with your numbers, especially when you are working on your revenue. Today I discuss why. 

Last week I talked about concentrating on important items. If you missed that post, you can review it HERE.  This week’s topic is start working on income early. Estimating your revenue (Income) correctly is the key to creating an effective budget.

Last week I talked about making sure you pay yourself first.  If you missed that post, you can read it HERE.  This week’s topic is concentrate on important items.  We all have the same amount of time to spend on our lives.  Don’t waste time over analyzing budget items that are not significant issues to your business.

Last week I talked about creating a schedule for your budget.  If you missed that post, you can get it HERE.  This week‘s topic is paying yourself first.  This is important on two levels.  First, when you pay yourself first, you are directing your business by setting a goal for it to achieve instead of just taking whatever is left at the end of the year.  Second, this keeps you in control of your finances instead of your finances controlling you.

Creating an effective budget is not something that just happens.  You need to have a good knowledge of your business.  You need to take time to look at what you have been doing.  You need to take time to look at what you are going to do.  If you are going to get all those things done efficiently, you are going to have to have a schedule.  Today I discuss how to prepare a schedule for your budget.

I recently posted about small business owners examining their businesses to make sure that job duties were being performed by the correct staff.  If you missed that post and would like to review it, CLICK HERE.  Today I am sharing a procedure you can use to analyze your staff duties.

Many people begin the New Year with resolutions for changes that they want to make for the coming year.  Unfortunately, many of those resolutions fail, in part because there is no implementation plan that goes along with the resolution.  In business, that equates to going through the year with high hopes for a profitable year, but no budget to help you get there.  Today I want give you some tips to help you prepare a budget for your business.

Last week we talked about ways you can work with your vendors to help save money for your business.  I have successfully used this approach with my vendors successfully for years.  If you would like to review them, you can review that post by CLICKING HERE.  This week I am sharing another area that you can look at to save money for your business. 

Sign up with just your email address for the FREE online Excel Budget Prep workshop by using the CLICK HERE link. 

Last week we talked about things you can do to save money in your business.  I hope that you have had a chance to dig in to those tips and have already put those tips into practice.  If you missed that post, you can still read it by CLICKING HERE.  This week I am sharing some tips on getting your savings analysis underway.

As Small Business Owners, we have many things that we have to accomplish.  Delegating duties to staff is vital to being able to keep everything functioning as it should.  This is especially true in the area of bookkeeping (accounting).  Most small business owners are not accountants.  This usually puts the accounting duties high on the list of duties to be delegated.  For most of the accounting duties, this is a very good idea.  The day to day detail activities required to prepare your financial statements don’t produce any additional income for the business.  You need to monitor the duties, but a good detailed bookkeeper can perform these duties for you. 

We are opening our FREE Excel Budgeting workshop soon.  This workshop is for small business owners and anyone who has a crew of people that they have to run.  CLICK HERE to sign up.

I was texting with a friend of mine the other day.  I had asked him how he was doing.  He responded:

                Over worked, under paid!  Beat up and burnt out!!  Same as it ever was!  Same as it ever was!”

At one time or another, many people feel that way.

Small business owners are busy.  They wear many different hats to keep their business going.  The CEO decisions are theirs to make, but marketing, customer service and yes, even taking out the trash often fall to that person, too.  Every task you choose to do will take time.  Once you use that time, you can’t get it back.  Many people think that money is the most precious commodity.  That is not true.  Time is the most precious commodity.  You can always make more money.  Time is limited.  You don’t get a do over on time.  Once you use the time, you never get it back.  It is very important to CHOOSE what you do with your time. 

Thank you for joining us today as we kick off our new blog, Practical Excel Accounting!

Each Monday we discuss in plain terms issues related to Accounting and Excel.  We will have tips you can use as well as discussing issues relevant to Accounting and Excel.  Join our mailing list to receive the weekly post by email.  Sign up below!  

Today we discuss keeping things simple.  Many people think that in order to impress their boss, they have to come up with a complex solution to what they are working on.  This takes a lot of energy all around.  You will spend a lot of time and energy creating a complex solution.  Simple solutions also take time initially.  The difference comes once you have the solution.