Have you ever been caught off guard by an unexpected expense? Maybe you forgot to plan for that quarterly tax payment, the yearly increase in office rent, or maybe you thought you would have more money tucked away in savings? If so, you're not alone. Many business owners and individuals have experienced these issues. That is why it is important to create a Budget. Creating a Budget can save you time and energy, but more importantly, it will save you MONEY!

When you create your Budget, you need to think about your business goals. For example, how much money would you like to have in savings at the end of one year? What are some of the items you need, or would like to replace during the year? Last, it is important to determine the number of months your budget will cover; monthly, quarterly or yearly.

Once you have determined these things, begin putting all the information together. Start with your "Target Revenue". Your "Target Revenue" is the amount of money you need to generate each month in order to meet your expenses. Next, you need to list all your expenses. This is the part that surprises many business owners! Many do not realize the number of expenses they have, or how quickly they add up until they begin to create their budgets. But, please don't let this part stop you from completing the process. View it from the perspective of just becoming more educated about your business! Finally, when you have your revenue and expenses listed, you are ready to determine the "Net Income". "Net Income" is the amount of money left once all the expenses are paid. This is calculated by subtracting your Expenses from your Revenue. The amount remaining is your total "Cash on Hand"; the money that you have available to spend, or "roll over" to the next month.

Having a solid budget in place can save a company a lot of money. It is extremely important to understand how much revenue is being generated and where it is being invested. Once you have this practice in place, you will begin to feel more confident when making an important decision for your company!

So, if you find yourself needing a Budget, contact the Virtually With You Success Team. We have the expertise you are looking for!

If you are currently working with a bookkeeper and would like for him/her to operate at a higher level, we offer bookkeeping training as well.

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About the Author: Lisa Coffey is not your average bookkeeper. After the fall of our economy and being laid off from her corporate job in September 2008, Lisa took on her first client. Starting out in the construction industry, Lisa quickly realized that her true passion was to educate and inspire entrepreneurs who were striving to pave their own way in the business world. Lisa officially started her home-based business in November 2008 and made it her personal goal to teach each of her clients to have a deeper understanding and better relationship with their finances, resulting in smarter decisions and higher profits.