Budgeting for Businesses

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BUDGETING FOR BUSINESSES

Did you know that during the 2020-2021 period the Australian Bureau of Statistics found that:-

  • 365,480 new businesses started operating
  • 277,674 businesses closed their doors for good.

As alarming as these figures are, a survey conducted by website CBInsights found that 38% of failed businesses closed because they ran out of cash or failed to raise new capital.

While it is important to know what will make your business succeed, ensuring there are funds to keep it successful is just as important.

Budgeting for Businesses is key!!!!

WHAT IS A BUDGET?

A budget is simply a strategic plan of your income and expenses.  Your budget can also be used to plan future revenue goals and purchases.

WHY YOU NEED A BUDGET

The importance of a Budget is to have knowledge of the following:

  • The financial position of your business
  • So, you can fund your business’s commitments
  • You’re able to make confident, safe financial decisions
  • You have money for future projects and growth

Having a well thought out and structured budget could be the difference between running a successful business and being a statistic.

HOW TO START A BUDGET

Starting a budget for the first time or even reviewing your existing budget can be very daunting, especially if you’re not a numbers person.

The Australian Government also has various websites which are aimed at helping business owners and private citizens manage their money for success.

  • www.business.gov.au – Here you will find plans on how to develop your budget.
  • ASIC’s www.moneysmart.gov.au – This website has information about Budgeting for your business as well as information regarding personal budgeting.

BUDGETING TIPS 

Our Top 5 tips for Budgeting for your Business are: –

  1. Set money goals to help you to decide where you want your money to go.
  2. Get a clear picture of your regular expenses, including when they’re due, and your spending habits.
  3. See where you can save and start saving-no amount is too small.
  4. Try to set aside money for emergencies
  5. Don’t be afraid to trim the budget

If you have any questions regarding your Business and/or its finances, contact us today and one of our friendly staff will happily assist.