You’re a business owner.
Your company boasts of enormous growth and ROI.
You have a great run currently and have a bright future in view.
In the hustle and bustle of overlooking the day-to-day business, you miss out on your business’s crucial aspect- budget.
And this tiny mistake may come back to haunt you in the future!
Because your budget is indicative of big things in your past, present, and future.
- It gives you complete control over your finances.
- You can make sure you will be able to complete your current commitments successfully.
- It helps to allocate funds for future projects.
- Enables you to make confident financial decisions towards your larger goals.
As your business grows, in size and worth, you may lose yourself in the daily planning and execution and lose focus on the budgeting process. You will have to delegate the budgeting to the heads of the sales, IT, marketing, and production developments.
But you would still like to oversee the whole process from the top, right?
That is what proper budgeting and business planning will do for you.
But why are we stressing so much on budget management?
Because it controls your investment and cash flow.
Because it helps review spending and financial decisions.
Because it directly decides the fate of your present and future commitments.
Let’s go ahead and see what good budgeting looks like!
The Guide to Good Budget Management
Create an annual forecast
Right at the onset of the new financial year, sit down with your planning committee and chalk out how the annual budget should look like- what ROI you expect and what you need to shell out to achieve it.
But do not go into the nitty-gritty – let the individual teams do that.
You decide the entire budget of the team; they allocate to specific avenues.
You decide the total marketing budget- they decide on the amount to allocate for Facebook ads and for influencer marketing.
Hire an experienced accountant
Bookkeepers should have precise knowledge of the nature of transactions.
The team works overtime and orders sushi- it goes into the Operations account.
CEO takes a client out for dinner- it goes into the sales book.
All these transactions should be communicated to the accountant, who can then segregate these expenses into different purposes. Even one of these goes into the wrong chart, and your books get messed up.
Keep track of actual spending.
Just budgeting won’t cut it. You have to keep an efficient system in place that will help you check the actual spending by all departments.
Budget according to bookkeeping period
Decide when you plan to do your books and go over your financials. Or you may make a mess of the whole process.
If you plan to go over your books every quarter, set a quarterly budget, not a monthly or annual one. Or else, you’ll be complicating the budgeting and bookkeeping processes unnecessarily.
Why A Budget Management Software is an Investment, you need NOW!
What is a budget management software?
A tool that allows you to create and monitor your budget. It syncs your bank accounts with other financial details and gives you a broad picture of where you stand financially.
Why are we recommending them?
Technology has made our lives easier, we must admit! And budget management is another area where tech tools and especially a bunch of SaaS tools can save our skin when we are in a spot about our financial status!
Budget management apps have specific functions that make them absolutely indispensable once you’ve started using them.
- They project a broader view of your financial goals.
- Import transactions and bank accounts to show you where you stand.
- Customize categories with pretty color coding, which saves time and makes the mundane process quicker.
- Give you a financial snapshot – assets, debts, and credit scores.
- AI used in the software can suggest investments based on your portfolio breakdown.
- Schedule tax reports in case that slips your mind.
Quite a hefty list!
Are you still sure you don’t need one?
Why should you go for Smartsheet?
It is a collaborative work management tool with built-in customizable budget management too!
Features of the tool?
- It allows you to stack actuals against budget and compare.
- Automated budget and spend approval requests.
- Overview of financial health in real-time.
The dashboards and spreadsheets will allow you to monitor the budget and spending of any department and at any level, you wish to.
And the fun part?
You get to even choose the type of budget- time budget, expense budget, or currency budget. And this is an absolutely unique feature!
You know how critical budget management is for your business. You can ramp up your investments with proper budgeting and set many more financial goals.
Thus, in this department, you should refrain from playing with fire.
And that’s why Smartsheet is the best way to go- tried and tested, accountable, and rich in functionalities. You can even integrate a plethora of other tools with Smartsheet to make the entire process more seamless.
And since we know how important this is for you, we have teamed up with Smartsheet in South Asia and Southeast Asia regions to bring this much talked about SaaS tool, which has thousands of clients spanning over 190 countries.
To know more about this wonder software, drop an email, and we’ll reach out to you!