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Tips on Budgeting for the New Year in 2016 from Small Business Accountant in Sydney Part 1

Tips on Budgeting for the New Year in 2016 Part 1

With the Australian Government recently releasing the budget on 21 September 2015, it got us at the small business accounting in Sydney thinking about how budgets can apply to your small businesses. More often than not, budgets are a necessary evil imposed on small businesses when they apply for finance applications with banks. The pros though outweigh the cons and it is recommended that the small business owner along with their accountant prepare a business budget for the New Year.

A budget lays out a plan for the future and tracks the incomings and outgoings over a set period (usually 12 months). The budget allows you to have a clear vision and highlights any points which may hinder you in achieving this vision. Here are a few ideas from us, the business accountant in Zetland, on how to have a well-crafted budget and to achieve your goals in 2016.

1. Cover all parts of the business:

A budget should ideally cover all aspects of your business, so you have an idea of how all departments are performing. For example, your marketing department will have key targets to achieve such as meeting expected sales targets while not going over the budget. Thus, at all stages you are kept informed on whether the marketing costs exceed the marketing income, which as a business owner is not a desirable option. Another example of implementing control through the budget in another department is staffing. If you can anticipate future growth and know what periods of the year will be busier than others, you can plan for staff levels to be adjusted based on what the budget tells you. You should be able to save on costs as you are not paying for underperforming staff or full wages when there are not enough tasks to be completed.

2. Monitor progress towards your goals:

A major concern with your day to day tasks could be fatigue, where you end up going through the motions and your vision is forgotten in the mire of routine tasks. By having a set routine of reviewing the budget at least on a monthly basis, you are more likely to be motivated towards achieving the goals set out in the budget, and perhaps even going one step further and revising the budget to further motivate yourself and your team.

3. Focus your thoughts and actions on your goals:

By keeping a physical copy of the budget in place where it will be regularly seen and read will serve to keep your eyes on the prize. Keeping the budget in the centre of all business decisions will definitely lead to better decision making on a regular basis. In a non-confronting way, it trains your thoughts to become aligned with the businesses goals to the point where it becomes second nature to the small business owner.

Next week, we will look at further ideas to fine tune your budget to allow you to accomplish your objectives in the 2016. If you need an immediate help from small business accountants in Sydney before the end of the year, contact mas accountants now.