Small business owners have so much on their plates that they sometimes don’t pay enough attention to their business’s bookkeeping. That can lead to a myriad of issues down the line. We work with many small to medium-sized businesses to help them put accounting controls and best practices in place and to provide accurate information for them to use to make wise business decisions.

As virtual accountants, here are three of the most common (and easily addressed) budgeting errors that entrepreneurs face:spreadsheet

  1. There are no financial goals set. If you don’t have financial goals in place, it’s easy to over-spend and you may find your business running in the red when having goals in place could have prevented that. Identify your business’s financial goals, where you want to be, how much you need to make, what you need to charge for your goods or services to achieve those goals and write them down. Budgeting is crucial to your business’s financial health.
  2. Underestimating expenses. Incidental costs pop up for business owners, but rarely make it onto the budget. As an example, your business purchased a new piece of equipment or software; the purchase itself may have been budgeted for, but you might not have accounted for the time and expense for training employees on the use of the equipment or software.
  3. Not adjusting your budget to reflect real-time expenditures. Your budget is a working document and you may need to make adjustments throughout the course of the year or even the month. Don’t be afraid to do that. Set aside time to compare estimates against actual expenditures and adjust the budget to reflect any changes.

If you’re looking for a way to get a handle on your accounting and budgeting needs, contact Tina@TheAccountantsOffice.biz  today to schedule a complimentary 30 minute strategy session. My team and I look forward to the opportunity to be of service!

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