Setting a budget – where to start?

Setting a budget – where to start?

By Steven Kassulke

You might have seen our last post where we shared our budgeting and cash flow model (in case you missed it – click here).

In the lead-up to 30 June, now is a good time to start planning for next year – so you can hit the ground running from 1 July.

When considering your budget, a good starting point is to review the 2015 monthly income and expenses as a base, with the most basic goal being to “beat” the previous year.  From there you can adjust the information for any known changes, projections or goals for the upcoming year.  You will then be able to track against this information on a regular basis to identify whether you are “on track” or have veered away from the plans and start thinking about how to improve or get back on track to “beat the budget”.

Most accounting software has the functionality to extract the 2015 information into excel, for you to make adjustments and then re-import the 2016 budget into the software to allow you to run reports comparing the actual figures against the budgeted figures.

If you have any queries about preparing the budget or exporting/importing the information from your accounting software, please feel free to contact Steve Kassulke from our office on (07) 3233 6422, or click here to access our downloadable budgeting and cash-flow model.

 

Image credit – Pefertig