So many of us cringe at the thought of creating and sticking to a budget. It can seem restrictive and many times we tend to avoid it. We create a bank account balance budget which may work in the short term but can often leave us wanting. We may be gazing at our bank account and wondering were did the money go! If you do not have a good handle on your money all that hard work in selling can go out the window with expenses. If you do not have a good handle on where your money is going then it is time to start. Once you know where your money is going you can start to plan where you want it to go. This is otherwise called a budget or forecast. If we start looking at a budget as future planning for every dollar that we earn then we realize a budget can give us more control and freedom to buy what we need and want and come out with a profit.
There are many ways to set up a budget but my preferred why is through QuickBooks Online. The reports give you a quick overview of how we are doing at anytime during the month and year. Budgeting can also be a wonderful tool to keep you on task for keeping you on track for your income and expense expectations. The bottom line is it you do not create a budget or have one that is accurate you may find yourself quickly spending more money then is coming in and accruing debt at the same time. Eventually, this debt can lead to business failure since you cannot operate a business if you can’t pay your bills.