Building a business is about more than just a dream. While your passion drives you, you need to make sure everything you’re doing is in the service of making sure your business is sustainable. That’s where a small business budget comes in. While most adults are no strangers to creating budgets, making one for your small business and sticking to it is another thing entirely. If it sounds daunting that’s okay. A CPA or accounting firm can help you get started.
A business budget is going to be an overview of your business’s finances all around.
It will look at the current state of your finances, factoring in income, taxes, and expenses to create a real time picture of what finances are available to you. It will also look into the future and determine the best decisions moving forward to ensure you stay within your budget and on top of your goals.
Below is some important information and tips on small business budgets and different ways you can get access to assistance.
Start with Income
The first place to start out is to know how much money you have coming in at any given period. Tally your income streams and tally the figures. This may not always be direct sales from your business, depending on what kind of work you do. Make sure to cover all your income sources and don’t miss anything so you can get an accurate picture of what kind of income you’re working with every pay period. Having this information will help when you are considering hiring a CPA for your business.
Once you know how much money you’re bringing in it’s time to figure out what’s going to cost you money each month or quarter. Fixed costs are costs that don’t change. This can mean rent, fixed utilities (like cable or internet), web hosting, payroll costs, any reoccurring membership fees, and other fixed costs. Because these are constant and don’t change, they’re a good place to start when it comes to taking expenses out of your income.
Once you’ve tallied up what doesn’t change, start looking at expenses that will be in flux. This is what’s going to change month to month or quarter to quarter. This can mean usage-based utilities, shipping costs, sales commissions, travel expenses, food expenses, or other single-time costs. This is going to make your budget look a bit different from month to month but when you know what to expect you know what to plan for. A CPA helps with the planning so that your business can grow and its heading in the right direction.
Can a CPA help me?
A certified public accountant, or CPA, is a finance and business professional who can help you with your budget and bookkeeping for your business. If budgeting scares you, they are professionally trained and able to help. It’s one less thing to worry about, so that you can focus on your business.
Is a CPA an accountant?
While they do similar jobs, CPAs and accountants are different and have different educational requirements in most states. So, make sure you do your research and hire the right professional for you.
If you are starting a business or your business needs accounting and tax services, Tax Avenger Canton MI can help. With over 18 years’ experience, our CPA / accounting firm is dedicated and committed to providing exceptional service to its clients. Our services include business accounting and payroll services, individual and business tax preparation, tax problem resolution and more! Call us today for a Free Consultation! Remote services are available.