[Video] 5 Ways to Improve Business Accounting & Budgeting
by Financial Design Studio, Inc. / September 7, 2020
[Video] 5 Ways to Improve Business Accounting and Budgeting
We have been talking to our business owners on ways to improve operations, legal structure, and accounting. Here are 5 ways you can improve the accounting or budgeting process that you have.
- Have a system. Real simple whether you do it on a notepad, Excel spreadsheet, a software like Quickbooks, have a system in place and do it repeatedly month after month.
- Track everything. Put everything into that. Know where all your money is going. Every dollar should have a home. Keep track of everything that is spent so you can then review it. What is not tracked isn’t known, and what’s not known isn’t measured.
- Review it. View it periodically, whether that is monthly, quarterly, or annually. Track it, review it, know where it is going, have a better understanding, to know the numbers.
- Plan and Set Goals. Have some reasonable goals that you want to obtain. What am I expecting to spend this next year? Is that reasonable? What am I planning on doing with it? Know where your dollars are going, to know the ROI(return on investment). Know where your dollars are going so that you can spend it wisely expecting returns.
- Be flexible and Keep Planning. This is always changing. A budget isn’t set at the beginning of the year and then never touched. A good budget is touched, reflected, updated, and revised throughout the year. So stay flexible and keep planning. Planning is “ing” its ongoing it’s all the time it’s not once and done it’s once and over again. Make it better.
These are 5 things you can do to improve your accounting and budgeting system. Try to have these in place. If you need help setting something up like a Quickbooks, setting up a chart of accounts, knowing how to set up a budget, or knowing what is reasonable for my industry or for my business we are happy to help you with that.