Setting up a business budget can seem like an easy task on the surface, but if you’ve ever tried to do this, you likely know that it can actually be quite challenging.
That being said, just because it’s not easy doesn’t mean you shouldn’t still do it. A business budget will help your business in many ways. However, there are a few things that are often overlooked. Sure, you will remember to include things like your rent and your employees’ salaries, but there are lots of smaller things that may slip your mind. These small things should also be included in a comprehensive business budget, so keep reading to learn more.
Include external services
While it can be easy to remember all of your internal expenses, most businesses also use external services, and you need to include these in your budget.
For example, you likely have multiple insurance premiums to pay each month. Or perhaps you don’t have an internal accounting department but you outsource the job, in which case, you should include those fees as well. And of course, if your business often has to deliver products to customers, you will need to include the delivery fee charged by courier services like Texas Couriers.
Include improvement projects
Your business budget should also include any improvement projects you have planned for your business. This could be anything from renovating the bathrooms to installing the Best AV equipment in your boardroom. These projects can be quite costly, so it’s important that you include them in your budget.
Having these expenses accounted for in the budget also makes it easier for you to prioritise which projects to start with first. It also ensures that you have enough funds allocated, rather than having to dip into other business savings or even worse – go into debt!
Include emergencies and unexpected costs
Look, we get it: no one expects an emergency. After all, if you know that an expense is coming, it’s not really an emergency, now is it?
However, you should still set aside some money in your monthly budget to cover any emergencies or other unexpected costs that may arise. Having this already accounted for in your budget will help to relieve some financial stress, and if you end up not using that money, you’ll have some extra savings!
Include your savings
Speaking of savings . . . you should really include your business savings in your business budget. Many people don’t do this, because investing in a savings account isn’t really an expense.
That being said, including it in your budget will help you to stay consistent and reliable with your business savings. This is because, once the money has been allocated to the savings section of your budget, it’s accounted for and thus can’t be used for anything else. If you’re not sure how much of your business’s money you should be saving, you can click here to learn more.
Include day-to-day expenses
As mentioned, it’s easy to remember the big items you need to include in your business budget and to forget about all the smaller expenses.
After all, a box of pencils or some sugar for the kitchen won’t break the bank, and these things can seem so miniscule that you may even feel like they’re not worth including in the budget. The truth, though, is that these small things can quickly add up, and before you know it, you’re spending a lot of money. This is why you need to make sure to budget for things like groceries and office supplies.