A business budget is the most effective way to keep your business and its finances on track. Budgeting is vital to ensure you stay in control of expenditure.
A business budget outlines what you will spend your money on and how that spending will be financed. A budget is a plan to:
- control your finances
- ensure you can continue to fund your current commitments
- enable you to make confident financial decisions and meet your objectives
- ensure you have enough money for your future projects
Collect historical information on sales and costs if they're available. These could give you a good indication of likely future sales and costs. It's also essential to consider what your sales plans are, how your sales resources will be used and any changes in your market or the competitive environment.