It may seem to some that creating a budget is just a tedious financial exercise, but you might be surprised just how valuable a budget can be. Estimating and matching expenses to revenue (real or anticipated) is important because it helps small business owners determine whether they have enough money to fund operations, expand the business, and generate income. Without a budget, a business runs the risk of spending more money than it is taking in or, conversely, not spending enough money to grow the business.
“We’ve always used a one-year budgeting plan in our business, and believe strongly in alignment with employees’ goals and a company’s financial performance. In structuring our longer term strategic and financial goals, we engaged the services of AcuityCFO to help us determine the viability of our budgeting process. In working with Judi, we established a four-year bottoms-up budget using AcuityCFO’s financial model as a basis. Through this process, we worked with Judi on several financial budgeting models which will help us with critical decisions surrounding personnel, management, sales & marketing, and G&A expenses. UTG now has solid financial models and processes in place, along with tools we can use on a go forward basis. However, what’s been most impressive about working with Judi is how engaged she is with us. Judi knows a lot of folks and works to connect our company to other businesses, when and where it makes sense. It’s nice to have AcuityCFO as a valued partner.”
Brian Miller, United Technology Group, LLC
Budgeting lies at the foundation of every financial plan. You need to know where your money is going if you want to have a handle on your company’s finances. It is about understanding how much money you have, where it goes, and then planning how to best allocate those funds.
Every business owner tends to have a slightly different process or way of budgeting. However, there are some parameters found in nearly every budget that can easily be employed. Let AcuityCFO help you prepare your budget with our financial model, and you will find how useful your budget can be.
Budgeting can be like going on a diet – you start with good intentions, but after a few months, you drift away from your plan. Let AcuityCFO keep you on track!