Rhode Island Chronicle

When starting up a new company, budgeting plays into every consideration.  However, most small business owners find budgeting to be incredibly complicated and time consuming.  This problem many times leads to business failure as mismanagement of funds ruins profit margins and the bottom line.

So, why is budgeting so important?  Money matters. And, budgeting does not have to be so complicated.  Consider the article from Business Insider, “3 go-to strategies to make budgeting less complicated, less stressful, and easier to stick with”.  The article list three primary benefits to a less complicated budgeting system:

Easy budgeting practices means you can pay of debt –

Easy budgeting systems can help a company track multiple sources of debt.  Having all of this information in one place listing outstanding balances, interest rates, minimum payments due and due dates allows a company to develop strategies for reducing debt and eliminating unplanned debit occurrences.  

Easy budgeting practices means you don’t have to depend on other methods –

Businesses need a proven budgeting strategy that is built specifically for their business type.  Simple makes perfect.

Easy budgeting practices means you can “stick to it” –

The problem with most budgeting systems is that a company changes from quarter to quarter or year to year how they evaluate and assess their finances.  This only leads to incomplete information and an inability to compare budgets over time. You can read more at this blog here to find out how budgeting in important to a company’s strategic planning.

Creating a budget is not just an exercise that the CFO gives to the managers of the company to provide busy work to those already very busy.  A budget needs to be a comprehensive plan for achieving multiple goals within a company’s overall strategy. Budgets serve as valuable benchmarks to company success.

Creating an effective budget does not need to be a daunting task.  See Porte Brown for more information on budgeting support.  Additionally, team members should be encouraged to participate in budget planning so that budgets can be developed at the team level first and then work up through division levels.  A more effective and easy budgeting system can be achieved with only a few considerations:

1. Identify the key decision makers in the organization

2. Take advantage of technology to assist budget development

3. Make sure the budget stays on track with the company’s strategy plan

4. Remember that the budget is a tool.  Don’t just created it and then put it aside

Budgeting does not have to be complicated, but it does have to be accomplished.  Work together as a team to build a simple, easy to use budgeting system for your company.

Media Contact
Company Name: Realtimecampaign.com
Contact Person: Rose Mary
Email: Send Email
Phone: 407-875-1833
Country: United States
Website: Realtimecampaign.com