The one thing about budgets is, ultimately, they are wrong. After all, they are the best guess of what we think might happen in the future. Maybe we are out networking and meeting that client that changes everything, or maybe Murphy’s Law kicked in; whatever the reason, it’s likely that you exceeded in some areas of your budget and missed in others. Either way, there is still plenty to learn from what we think will happen and what happened.
Comparing actuals to a budget can offer insights throughout the year. If you are missing your revenue targets, the team can strategize how to get back on track – more advertising. More prospect meetings? If business exceeds expectations, you may afford the new equipment to take on larger clients or retire some credit card debt.
One of the most frequently asked questions is, “How do I know what to budget?” One approach is to consider how much you want to make. We can create a break-even analysis and fill in the numbers with this number. How much can you charge? How many hours can you work? What is your overhead? This begins to form the outline of your budget.
There are many approaches to budgeting, and we can guide you through the process. Our job is to make your life easier.
At ZümiFi, we sweat the details, so you don’t have to!