Healthy Business To budget or not to budget

It is always better to decide how to spend your money before you spend it. Otherwise, your money spends itself and you lose control.

The most important concept in creating a budget is to be conservative with your projected revenue and be liberal with your expenses. In doing that you create a realistic budget and not something that you struggle each month to stay within.

The most common phrase I hear from business owners is, “I don’t know where all my money has gone!” With a good budget you can run a “Budget to Actual” report that will help keep your company on track with how you’ve already decided to spend.

I find that it is rarely how much a company makes that is the problem, but usually always, how much it spends.

Article By Lionel Thompson