When was the last time you took a look at your own budgets? Hopefully recently? Yesterday? Last week? It’s important, if you’re going to navigate your business in the right direction, that you have your budgets in place.
This is important for a number of reasons. It forces you to stop and think about what your goals are, and then it forces you to lay out the plan for how you’ll get there. At the same time you’ll be forced to think about how realistic it is. Can you do this? Will you be able to hit the revenue numbers you want to, and will you be able to control the cost of sales, and expenses?
BillQuick Online gives you the ability to create a budget. You can enter the date range for the budget you want to set up, and you can save multiple budgets. Once you enter the date range for the budget you want, prior year data (if available) will populate. Next as you enter your new budget data, the form will show you the dollar and percent change from the prior period data.
You can set up a separate budget for each month, quarter, and year. I suggest doing the monthlies, and the whole year. Then you should analyze each month’s budget, and compare it with your profit and loss for that month.
That last piece is critically important. If you prepare a monthly company budget, and review it each month, as the months close, you will have a real sense of where you are in comparison to your goal. When you go off the rails (and you should expect to), you will afford yourself the opportunity to course correct.
When I develop projections for clients, and we revisit them monthly, I know that I feel good about feeling like we’re on track. When we do go off the rails, we can get back on track quickly, and oftentimes we can see on analysis that it was just an anomaly, and we don’t expect it to continue. In short, there is nothing we need to do, but it’s good that we took the time to analyze it, and be sure.
Most people report to me that they actually sleep better when they are engaged in a process like this. As a client recently said to me, “you can’t run a business properly without doing stuff like this.”
Setting up a company financial budget in BillQuick Online is something that is really easy to do, and the value it will bring for you will make the ROI on the time, effort, and energy spent, very much worth your while.
Check the video above, and see how this works.