With less than six months left in 2019, it is not too early to begin setting your business goals for 2020. The core of working towards those goals is creating budgets for the coming year. After all, keeping your business finances in order is important if you want to create a long term sustainable business. Here are 3 benefits of creating your 2020 budget now:
1. Budgets are great tools to use as a creative entrepreneur with inconsistent income. Personally, I like to create Yearly, Quarterly and monthly budgets. It gives me an outlook of my upcoming expenses and possible contingencies, so I can plan ahead.
2. Budgeting ahead can save you money in the long run. Ever fall into the trap of spending too much? Creating a budget ahead of time allows you to make to make informed choices when spending. It also serves as a guide on what expenses are necessary and how much you should spend. With a budget in hand you can avoid unnecessary expenses.
3. Budgeting for the year can help you estimate your projected tax burden. Say goodbye to surprises when it’s tax time. Creating a detailed budget for your business can help you in estimating your tax burden. It is advisable that you periodically revisit your budget to make sure you are setting aside an adequate amount for tax payments
There are several tools that can be used for creating budgets. Xero Accounting software is one. In addition to using Xero for your accounting records, you can create budgets directly in Xero making it easy to compare your actual expenses with your budget throughout the year.
Are you ready to create 2019 budgets but don’t know where to start? Schedule a consultation here
today with us.