Budgeting for small businesses – how to plan your financial success

admin — Wed, 06 Dec 2023 13:39:04 +0000

Creating and sticking to budgets is a great way to guarantee financial success for your business.

With the help of an accountant, you can accurately plan your business’s budget, ensuring that your finances are always in line.

So, how is it done?

Predict your expenses

The first stage of budgeting is collating all your predicted monthly business expenses.

This can be broken down into three parts:

Fixed costs that stay the same each month, such as rent payments, certain bills, staff wages etc.
Variable costs that change, including utility bills and supplies
One-off expenses such as replacing broken equipment

By predicting your expenses, you begin to build a picture of your monthly outgoings.

Estimate your income

To balance your outgoings, it is time to figure out your income. This allows you to predict if you will be able to cover your expenses.

If you are an existing business, you can use previous data to help predict what your profits may be in the coming months. An accountant can help you to do this if you are unsure.

The process can be more complex if you are a new business.

It can be tempting to overestimate your profits, but this can set you up for failure. It is best to be conservative with your estimates, ensuring that you don’t spend more than you earn.

If you are unsure about this process, it is best to consult with an expert.

Predict your profit

From the above, you should be able to work out what your profits will be. The easiest way to do this is to take the expenses out of the income, to see what you have left.

If you are operating at a loss, it may be time to reevaluate your business plan.

You will need to either find a way to increase your income or decrease your outgoings by cutting expenses. If there are no clear ways to do this, it is best to get an accountant on board.

Whilst hiring an accountant may seem like an extra expense, they are trained to help find holes in your budgeting and business plan.

They will be able to help figure out where costs can be cut and direct you towards ways to increase your income.

If you would like help with your business budgeting, get in touch today.

The post Budgeting for small businesses – how to plan your financial success appeared first on Grunberg & Co.

OBR warns that the UK economy may contract by more than a third before bouncing back by end of 2020

admin — Wed, 15 Apr 2020 08:47:09 +0000

The Office for Budget Responsibility (OBR) has released a new report which suggests that the UK economy may shrink by 35 per cent in June as a result of the Government’s ‘Stay at Home’ guidance, before ‘bouncing back’ in the following months.
The OBR report, which is not considered an exact prediction, suggest that UK gross domestic product (GDP) could drop by more than a third in the second quarter of the year and by 13 per cent for 2020 as a whole.
As a result, it has warned that unemployment may rise by 10 per cent and that people could see a hit to living standards below that of the 2008 financial crisis, but it said that the country’s recovery would be quick, thanks in part to the Governments measures and stimulus package.
The OBR’s report is based on the assumption that the UK lockdown will last for at least three months. It said: “The longer the period of economic disruption lasts, the more likely it is that the economy’s future potential output will be scarred.”
The OBR concluded by saying that GDP could recover to its pre-virus levels as quickly as the end of this year if the right steps were taken and businesses could get back to work.

The post OBR warns that the UK economy may contract by more than a third before bouncing back by end of 2020 appeared first on Grunberg & Co.

Budget Archives - Grunberg & Co

Budgeting for small businesses – how to plan your financial success

OBR warns that the UK economy may contract by more than a third before bouncing back by end of 2020