What is a budget and why do I need one?

Simply put a budget is a road map of getting your business from A to B.  It will show you where your business is productive, and not so productive, so changes can be made, resources moved or invested.

Key benefits of a budget are:

–      It provides clarity and creates focus

–      It provides clear targets for your business – sales and spending

–      It is a roadmap to achieving your goals

–      You can anticipate any future problems and make improvements

–      It allows you to effectively control your cashflow

–      It keeps your spending on track

Whether you’re a start up or established business a budget will help with your business journey.

Start-ups

Owning a business will cost you money before it has even started trading.  A comprehensive budget will ensure your focus is in the right direction, cost-related decisions have firm financial backing and you have the confidence required to continue on your journey.

Established businesses

Are you growing?  Are you using all your available resources in the correct manner?  Are you seasonal?  A budget will help answer all these questions and provide clarity and focus.  A budget will help establish the sales required (clear targets) to achieve your financial goals and grow your company.

Other budget benefits

Once your business has set a budget it can then be used on a monthly or quarterly basis to assess where you are financially – there is no point in setting a budget and then not monitoring it and assessing your results in comparison!  Monthly, or quarterly, management accounts compare budget to actual and shows where your business has achieved, exceeded or under performed.  Your budget can then be tweaked to allow for this and focus can be maintained.

What is involved?

You’ll attend an initial meeting (Zoom or face to face), where we’ll:

  • Determine your fixed monthly and annual overheads for the year ahead.

  • Establish your desired personal earnings for the year.

  • Set a sales budget to allow you to cover your overheads, and also reach your desired personal earnings for the year.

  • Ensure you are happy with your budget – that it realistic and achievable, and you are clear on your next steps to achieve your budget.

Once we have finalised your budget we will input this into your Xero so you can view your budget and run the Xero comparison report.  We will also tweak your budget during the year as required.

Don’t just take our word for it…

… here’s what one client had to say about our budgeting service and how it has helped their business:

Thank you so much Vikki and The Pink Pig team! Being in business on your own can be really hard. Not having the time or the knowledge to be able to run the budgets I know I should be doing is soul destroying at times and I often doubt the viability of the business. Just a few simple questions, access to my accounts and ‘WOW’ I now have a fully operational and very real budget to help me better plan and grow. I am also so grateful for the regular accountability check-in to sense check how I’m spending and what I’m bringing in. This really is invaluable to my business! Thank you.

Emma Knewstub, Director, Magnificent Stuff Ltd

How do I start?

If you want more certainty in your business let’s talk together about your future!

If you’re an existing client simply email either Cheryl or Vikki to ask to add budgeting to your services, and we’ll get you a proposal forwarded over.

If you are not working with PPF yet, then please visit our Work With Us page, complete the quick questionnaire and book a discovery call with us today!

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