All business owners understand the importance of budgeting on a theoretical level. But many believe they can’t do it because they have a sense that it's too technical and complicated. As a result, many business owners hesitate to prepare a plan.
But it's not really as tedious as you think.
Here's how to create a simple one-page budgeting and cash flow plan that you can use to get a handle on your company's finances.
First, create a table or worksheet with four columns, labeled items, projected value, actual value, change. The last column will reflect the difference between your projected value and the actual value.
Next, have as many rows as it would require for you to list all your sources of income and expenses for the month. Be sure to group all your income and expenses on one area and include a sum for both numbers.
Fill out the worksheet as you go, providing for your estimated budget for each item under the projected value column and your actual spending our income under the actual value.
See sample bellow for illustration purposes only. Bear in mind that the idea is to put all items or sources on the worksheet, so you have to update your plan every time.
Of course, managing your budget is more involved -- at The Growth Coach, we can help you identify tools that will help you carry out your financial plan. At our Business Plan Webinar Series, we'll tackle dollars and cents in a fun, engaging way -- so join us! Click here to learn more about registering.
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