Okay, it might sound silly to add the word ‘completely’ to this EOFY tip, we all need to have a budget, but what I am referring to is this, is the budget signed off?
Factors that you need to address when preparing a comprehensive budget include; have you looked at your business costs? Does your budget take into account growth in your existing business and the organic growth available through recruitment and increases in your number of managements?
Have you looked at your businesses available capacity as it sits today, or are you bursting at the seams? All of these known factors should be reviewed and given consideration as you finalise the budget for the next Financial Year.
Finally, once the budget has been finalised and agreed has it must be entered into your accounting software (e.g. MYOB, Quickbooks etc)? If not, make sure it does otherwise it will be forgotten?
The budgeting process is a wonderful exercise to facilitate a regular review from ‘Bottom up’ or ‘Top down’ of all people, events, agreements and investments you have in place in your business. It should play a regular role in the sound management overview for any business owner that wants to achieve success. An old management truism makes the point, “if you aim for nothing, you’ll achieve it with great regularity”. I hope you aim for a little more.
If you don’t know where to start, speak to your accountant or trusted advisor. Our team at Live Business Services is also more than happy to help.