To many, business budgeting doesn’t sound very interesting. To a successful small business owner, the word ‘budget’ has a different meaning.
Business budgeting is more about setting goals, tracking targets and being accountable than it is about accounting. Your budget is an outline of where you want to take your business and what you need to do to get there.
Are you on track to achieve the goals you set out at the start of the year (this assumes, of course, you set some)!
Three signs your business needs a budget
Here are three signs your business could benefit from a budget:
- If you’re not keeping score (reporting actual results against targets) how do you know if you’re winning?
- As a business owner, you’re struggling to translate numbers and data into insights. How do you assess what’s working and what’s not?
- You don’t have the discipline to pause, look at the numbers and confront the questions that need answering. What are you going to do differently and who is going to make sure you follow through on that strategy?
The good news is, it’s not too late to ask yourself these questions.
The power of the budget process is in understanding the key metrics in your business that drive success and using it as a tool to hold yourself accountable.
We’ve been facilitating quarterly management meetings with growth-oriented business owners to help them reflect on their progress towards their budget – and how to close or capitalise on the gap (regardless of direction!). If you use cloud accounting software and are struggling to hold yourself accountable, why not import your budget into the cloud and give us a call? We’d love