If you use it, a well-planned budget can be a powerful business tool. Used with a working business plan and QuickBooks software, a budget will help you make well informed choices for your business.
Create Monthly and Yearly Projections
A budget is a realistic, educated estimate of both your revenue (from sales, accounts receivable, interest and other sources) and expenses (supplies, rent, utilities, payroll, marketing and other miscellaneous costs). It is a good idea to have a monthly budget and a yearly budget. If done correctly is can help you plan how to realistically allocate your resources.
You can use your QuickBooks software to create monthly, quarterly or annual budgets. You can even create a QuickReport© to get a detailed view of your company's finances at any point in time.
QuickBooks budget can provide you with the format for inputting planned expenses and income. Review your previous year’s Profit and Loss statement to get started.
If you weren't in business last year, research typical costs and revenue associated with similar small businesses. Use this information to project your budget for the coming year.
Keep Simple Records
QuickBooks follows the same layout as the Profit and Loss statement so the accounts you use are the same ones you use everyday to code your entries.
This lets you do reporting to compare your budget to your current actual financial status and see if your predictions are holding true or if you need to do a budget "tune-up".
Ask for Help
Setting-up your business correctly in QuickBooks, as well as creating a workable budget can be a daunting task. Quality Accounting Solutions can help. Contact Vicki Borror for a free introductory one hour consultation.
Quality Accounting Solutions can help you with all aspects of QuickBooks, bookkeeping and accounting. Do not wait another minute. Get your business finances in order today!