The word “budget” is often a scary word to business owners, but it shouldn’t be. A budget helps you to keep track of the financial goals for your business as we discussed in a previous post as well as keep you updated on your monthly debt retirement activities.
Always refer to your business plan for the “big picture” of your business goals, and then generate your income and expense reports from your small business accounting software. Then working with your bookkeeper and/or accountant set up your budget in these five easy steps:
- Determine your monthly income and accounts receivable. If you are a freelancer or otherwise receive your income irregularly, it is important to figure out which of your accounts receivable are more on the “certain” side—such as from clients on retainer, and which are more one-time income.
- Determine your monthly expenses and accounts payable. It is important that you keep not only your regular expenses such as office rent, salaries, taxes, supplies, etc. entered into Kashoo, but also all smaller expenses and incidentals. With the Kashoo for iPad app, it is easy to remember to enter your expenses when you’re away from the office.
- Categorize all income and expenses. Here is where your Kashoo app really helps! All of the financial information can be downloaded seamlessly from your bank and into your line items for income and expenses; you can also add and adjust entries manually. Your Kashoo business dashboard gives you a quick overview of your business finances and your business statements.
- Evaluate your reports. With Kashoo, you can share with your business partners and bookkeeper and/or accountant online because everyone to whom you have given access can be working with the app and collaborating simultaneously for as little as $10/month.
- Stay on Track. Now that your budget is set up and you have all of your financial records organized in your online small business accounting software, you can easily and regularly monitor your income and expenses to stay on track with your business budget!
Kashoo Inc. (http://kashoo.com) develops simple cloud accounting and bookkeeping software for small business owners around the world. Check out the company's iPad app, ideal for entrepreneurs on the move. Founded in 2008, Kashoo is located in Vancouver, Canada. For more information about Kashoo, visit http://kashoo.com.