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3 Common Budgeting Mistakes Businesses Can’t Afford To Make

Imagery of cutting costsMany businesses regularly overlook 3 common mistakes that wind up costing them dearly and obstructing their path to a successful venture.

A lot of business owners go into business because they are good at making widgets or good at providing a service. New business owners quickly find out that managing financial operations is quite a monumental task. It’s common for business owners to encounter the following pitfalls:

Neglecting To Clearly Identify Desired Results

Zig Ziglar once said, “If you aim at nothing, you will hit it every time.” A lot of business owners make it a “goal” to just have more money coming in than going out. It’s much more beneficial to specify exactly what you want to achieve in your business so you can plan finances appropriately. Money is the number one thing that holds businesses back from achieving desired results. But if you plan for it and work through it with a trusted professional advisor, the sky's the limit for your business.

Incorrectly Forecasting Costs

There are always unexpected costs that come up. Maybe a competitor launched a campaign that’s taking away market share and you need to respond to stay competitive. Or maybe insurance didn’t cover as much of accident as you thought it would. These things come up. We’ve been advising businesses for years and can help you identify those costs that can blindside you and wreck your budget.

Unsuccessfully Adjusting

Every month you should make it a point to evaluate what you’ve spent so far and what’s changed about your financial landscape. Remember, while a plan is practical and wise, you were also making plans based on older knowledge and circumstances. Things change quickly in this economy and it’s imperative you adjust to stay on track.

We’re always here to offer advice on preparing a budget and helping you make real-time assessments while you are living out said budget. Everyone has a unique situation and it’s always best to get advice from a professional that understands where you are financially.

Do you have the support you need to manage your small business bookkeeping? Contact us to schedule an appointment to speak with a local small business advisor.

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