Hopefully have completed your taxes in time for the big deadline around the corner; if so, it’s time to reward yourself with a little time to relax and regroup as to where your business has been, and perhaps how you can make it more profitable and enjoyable for the balance of the year.
To help you out, Mark Robertson CPA of Reno, Nevada, is offering some free advice to you today on how to build a better business budget.
Tip No.1: Check Out Your Industry
Thanks to the World Wide Web, there is endless information about how to make a small businesses better. And, if you search the Web hard and deep enough, I bet you will find insight about how business owners who do what you, are doing a better job every day. Although the internet offers a tremendous wealth of information, there’s nothing better than a good old-fashioned face to face chat with someone who runs a similar business.
Tip No.2: Review Your Expenses
In the business world, department heads are asked on a monthly basis to go back to their budgets and fine tune their estimated expenses. When was the last time you really took a pencil to your own spreadsheets and did your due-diligence? Pay particular attention to line items that were dramatically over or under projections. And, due to today’s ever changing trends, it’s not uncommon to have to adjust some pre-determined expenses in heat, communication, and other critical business operational needs.
Tip No.3: Be Conservative With Your Revenue Projections
Now that you are moving forward into 2013, you have a good feel for the rate of revenue growth to date. Use this insight to possibly alter your business revenue projections. And do remember, these are not set in stone. If you have plans to broaden your target market or to seek assistance to implement a new advertising or marketing campaign, adjust your projections accordingly. As a business owner you have full control of balancing your budget on a monthly basis.
Tip No.4: Trim Where Trimming May be Warranted
If there is anyone in your business that knows where cuts can or have to be made, it’s you. If times are tight, you have the responsibility to find the cash to pay an important bill, invest in a new product, or capitalize on a new opportunity. Some thoughtful maneuvering on your part could provide you with a little more peace of mind
Tip No.5: Re-qualify Your Suppliers
Every smart business keeps their suppliers on their toes. Do you? Spring is a great time for ‘cleaning house’. If you have not been fully satisfied with your suppliers or vendors, there is no better time to prepare an RFP (Request for Proposal) and re-bid their products or services. It’s your responsibility to your business today and the future of your business dreams of tomorrow.
Tip No. 6 Build Your Contingency Fund
We can’t always know what the future will bring so plan accordingly. As you sort through your financial spreadsheets, be sure there is a line item for contingencies. This could include a much needed office expansion, coverage of damages incurred by Mother Nature, or a need to react to a severe change in trends that relate to your product and services. Like they say in the Boy Scouts: Be Prepared.
That’s just the beginning.
For over 10 years, Mark Robertson CPA has provided personalized financial guidelines to individuals and businesses throughout Nevada and California. We love to share our stories about how we have helped others succeed … and we’d appreciate the opportunity to do the same for you.
Call Mark Robertson today at 775-825-5522.