Budgeting has to be done at least once annually when planning for the year ahead, but you may also have to revise your budget if you experience fluctuations in your finances during the coming 12 months. This may be a daunting task, especially if you are a new business owner, but a reputable accountant can use a variety of information to produce a viable budget for the year.
Outsourcing finance to an established accounting company will ensure your company gets off to a good start.
What is the time frame?
You can produce a budget for any time period, but it is usually based on the type of business you have. If you are a small business owner or have a start up, you may find it easier to have a budget for a short period of time, perhaps on a weekly or monthly basis. Your accountant will advise the most suitable option for your business.
Expenditure
To create a budget, your accountant will make a note of all expenses you can expect to incur over the next week, month, quarter or year. The expenses should be organised according to priority items, and then incidentals. Expenses can be further categorised based on whether they can be deducted from gross profits, or whether they have to be claimed as capital allowances or other types of outgoings. Outsourcing this responsibility to an accountant will leave you free to deal with other aspects of the business, safe in the knowledge that you are remaining compliant with regulations.
Maintaining the budget
An accountant will ensure the business stays on track with a budget, only spending what is necessary. If problems do occur, these will be spotted immediately and financial solutions will be sought.
If you are considering outsourcing your budget, please get in touch with us.