Archive for budgeting

Budgeting effectively

Posted in Finance with tags , , , on September 2, 2010 by virtualcitypa

Business budgeting is very important in every company regardless of its size. Good business budgeting plan can business owners and executives achieve their goals and stay in competition despite difficult or unexpected financial situations.

Business budgeting is basically financial planning. It can be simple or complex depending on the nature of your business but it is best if you keep the budget presentation simple and clear. Above all, use caution when creating your budget. Make sure all information is accurate and up-to-date for effective business budgeting.

Below are several budgeting tips that you can try:

• Be realistic

Business budgeting should be based on numbers that is backed up by sensible expectations. These expectations should be based on both previous business financial performance and projected business developments.

• Business budgeting should be time-bound

Business budgeting should be prepared under a specific timeframe. The budget is most of the time based on the company’s fiscal year or you can also project a budget on a monthly or quarterly basis.

It is recommended that you break down your budget on a monthly basis even if you have already prepared it on your business’ fiscal year. To make your business budgeting easy, consider using a financial program or software.

• Make an estimate on your income and expenses

Business budgeting relies on your expenses and income within a specified timeframe. Your income should include the payments gathered from sales, interests, accounts receivable and other sources. For the company expenses, all funds that leave the company should be included. Such expenses include payroll, materials, utilities, real estate so on and so forth.
Regardless of how cautiously you plan, there is not doubt that you will come across with unexpected expenses as you run your business. This makes it very important for you to save some allowance for them in your business financial plan.

Also, it is a good thing to consider the time when both income and operating costs will be incurred. For instance, if you run a business that is seasonal, there are months wherein your sales will definitely go down. In this case, it is important to make sure to adjust the budget accordingly for the lean months.

These are just some business budgeting tips that you can try. To be honest, business budgeting is not easy but if you master it, you can be sure that you will encounter lesser financial problems in your company.


Personal budgeting

Posted in Finance with tags , , on September 21, 2009 by virtualcitypa

Budgeting money is very important and learning how to do it is not that easy yet it is very much achievable. Budgeting money involves making a plan or a layout on how to spend wisely. Also, budgeting allows you to save essential funds for priorities such as house rent, bills, car loan, household supply, clothing and savings.

Budgeting money in general is all about calculating your monthly expenditure based on your living costs from preceding months and saving for emergencies or unexpected circumstances like visits to the doctor or buying a new set of tires.

The very first step in budgeting money is to know your monthly income and expenses, which you can break down in monthly and yearly terms. Once you have started in budgeting money by following the above step, you will be able to see where your money is being spent.

Afterwards, think of different things you want to save for such as home renovation or travel vacation and things that you need to save for aside from emergencies such as college funds, wedding and etcetera.

Budgeting money is about prioritising your expenses within a specific time, ideally in a monthly basis. Start thinking of things that you can live without and what you really need. Keeping track of your expenses like keeping your receipts or writing down what you have recently purchased can be very helpful in budgeting money and saving money.

Once you get your pay, you should immediately deduct from it the amount that you will need for your bills and all other necessities. Afterwards, set aside an amount for your personal and emergency fund savings. Then, if there is any spare cash left you can spend it on whatever you want.

You should strike a balance between being frugal and being good to yourself. Remember that there are things that you really need and there are things that you only want. You should know which to prioritise. Spend your money first on what you need because the things that you want can always wait. On the other hand, do not be too hard on yourself. Choose activities that will allow you to enjoy your hard work while keeping costs under control.

Budgeting money is also about planning your lifestyle and being aware of your spending behavior. Once you already have your budget plan set, try your best to follow it. There is no sense in having a budget plan if you do not stick to it. Budgeting money is something that anybody can plan and do. It may be difficult at first but eventually you will get the hang of it. The key is to adjust little by little.