SERIES: Creating a Business Budget: Researching Accurate Costs

Bookkeeper VS Accountant

So now you understand the necessity of a business budget, Ha? Well one of the first steps to providing your business and accurate budget is researching your costs. This first step though, as well I’m not in any underestimate. Here are a few tips on avoiding this problem.

  1. Always Plan on it Being More

Please notice me didn’t say “spend more.” That is not what we’re getting at. But such as life, many times for businesses, unforeseen costs come about when you don’t expect them. Making sure that you have money to cover a few unexpected costs will be helpful in the sense that you won’t need to be put into debt, since it was planned for. So basically, expect the unexpected by overstating costs. This will help you avoid underestimating your total expenditure.

  1. Understand your variables

Is your business sales oriented? Are you providing a service or a product in public? Depending on your employees and their abilities, and also your suppliers, it is difficult to forecast the money that will be brought in and the money that will go out. Do your research, make sure you are getting quality product for the best possible pricing, and invest in your employees. Make sure they are trained adequately, and believe in your product to make customers believe in it as well. This will help them reach their goals, and help you with your variables as well. 

Are you looking to create a business budget, or do you have questions about researching your costs or making the most out of your variables? Give Hacker Accounting a call today: (602) 375-5251

Chris Hacker
Chris has been working in the bookkeeping and accounting field for over 15 years preparing business, income and payroll taxes. Chris has a bachelor’s degree from Arizona State and is an Enrolled Agent with the Internal Revenue Service.