If you’ve ever found yourself wondering where all the money is going in your business, you need to change your approach to spending. Working out a business budget is sometimes confusing and can be boring, but it’s one of those administrative tasks you have to take care of if you want your company to succeed.
Start planning and visualizing your company’s budget with these free 5 Free Business Budget Templates for Better Cash Flow:
Not sure how to get started? A free business budget template is a useful tool for everything from estimating startup expenses to working out long-term projections. Here’s how budgeting with templates can help you reach your business goals.
No business can afford to operate without an understanding of the balance between the money going out and coming in. Poor cash flow management is the reason 82 percent of small businesses fail; they simply run out of money because nobody knows if expenses are exceeding income until it’s too late.
Budgeting puts cash flow and expenses down on paper and clearly shows how much is available for spending at any given time. With a budget, it’s much easier to track your company’s spending habits and made adjustments. Using a template for small business budget planning prevents even the smallest expenses from falling through the cracks so that you can minimize debt, improve cash flow and prepare your business for growth.
It’s a challenge to go from no budget to a detailed plan. Templates make the transition easier by providing an outline with categories for expenses and income. Plugging your numbers into categories reveals where you’re currently spending the most and alerts you to where spending habits need to be reined in.
A basic business budget example includes categories for both fixed and variable costs and can be customized for the specific needs of any industry. Fixed costs are the easiest to calculate because they remain the same every month, such as rent, insurance, loan payments and software subscriptions. Variable costs, including inventory, employee commissions and utilities, change over time, and putting them in your budget allows you to track trends and make better projections for the future.
Templates also include calculation tools to minimize errors. Totals appear automatically as you put your expenses and income into the template, and you can use the information to calculate a minimum viable budget. This is the absolute least amount you need to continue operating and makes a good baseline for growth projections. From there, you can use templates to set goals for each department and the business as a whole. Because templates lay out your budget in a clear and concise format, it’s easy to communicate and enforce spending limits for employees and departments as they work toward their goals.
When you need to make a purchase that your cash flow simply can’t cover, a business budget template shows whether a business loan is a viable solution. You can get a quote for the type of loan you need, put the estimated payments in your template and see if your current income is enough to cover the debt without getting overwhelmed.
Working out a budget is part of a smart accounting strategy, which also includes accurate bookkeeping. Daily tracking of income and expenses, along with reviewing reports on a regular basis, keeps you focused and alerts you to potential cash flow problems right away. If you’re having trouble staying on top of your records, bookkeeping services can help.
National Business Capital and Services provides a streamlined software solution with a dedicated accounting team to take the hassle out of accounting tasks and make managing your budget easier. Using software allows you to automate and outsource time-consuming administrative work, get your cash flow under control and build strong, more financially stable company.
Fill out our 1-minute application here or give us a call at (877) 482-3008 for more information.
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Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.