Yes, You Need a Budget
Business Owner - “Do I need a budget? My company changes so much!”
Me - “Yes.”
Let me explain why.
A budget is a roadmap for your company. It lays out where you plan to go. It lets you see what is coming and decide if that is still the right plan for you. It also lets you know what your monthly fixed costs are (aka Burn Rate).
Once you have a budget and you put it into your accounting software (we recommend QuickBooks Online for most clients). This allows you to run a budget to actual income report. Then you can see side by side how you actually did compared to your plan.
And as the year goes on, you can make changes to the budget as things happen.
As a kid we travel by car a few times a year on LONG road trips to see family and for vacation. I remember sitting in the back seat holding the map, trying to figure out where we were in comparison to where we were going (no GSP or smartphones in the 80’s for us kids!). Often my sister and I would find something fun along the way to stop and see. And if time allowed, we would detour from our planned route and check it out. Sometimes these detours would take us on grade adventures that made us end up in a totally different place then we planned. But we always had our roadmap to tell us where to go next.
Your company needs a roadmap or how will you know when you get to your destination?
Want to chat about how a roadmap for your company can help you get to your next million faster?