Over the last few days, I have discussed the importance of budgeting for small businesses. I have also walked you through the process of creating a budget for your company. Now I want to take a step back and throw some common sense into the mix.
Don’t let the process of forming and monitoring your budget consume more of your time than is absolutely necessary. Planning is essential to success. However, it is easy to get caught up in the budget creation and monitoring process, and be constantly analyzing your firm’s progress and tweaking the budget to get it more in line with reality.
When this occurs, you aren’t selling and producing. These are the most important jobs you perform as a small business owner.
If the budget creation and monitoring process requires a great deal of time, you need to consider outsourcing the function to a CPA (The Virtual CFO performs this service) or delegating the task to someone else in your company.