Show your business some love with a healthier budget and cash flow this quarter.
We know that budgeting is no one’s idea of a good time. Writing everything down, coming to terms with any unhealthy habits, confessing to unnecessary purchases and agreeing to tighten the belt, so to speak. But instead of moaning about budget, penny pinching and purse strings, let’s take a look at why budgeting is so important, and how to stick to one – for the good of your business.
Who are we?
Timewise VA have specialised in helping small (and growing) businesses for over 30 years. We provide support with business finances and administrative tasks for busy business owners who need an extra pair of hands.
What is a budget?
Essentially, a budget should be regarded as a detailed spending plan. It’s definitely not as negative as it has been made to sound! In fact, the budget creates the visibility that’s needed to plan future financial decisions including investments, asset management, hiring and expansion.
It’s a goal setting exercise, but one we’re keen to help you to stick to. There are lots of different budgeting types, so it’s always good to discuss this with a bookkeeper or accountant before you commit to such an important decision.
Why should a business have a budget?
As we’ve already mentioned, budgeting each month will create a healthier cash flow, better visibility for future investments, and a goal to work towards (if you’re not there yet!).
So what else can a budget do for your business?
- Improve resource allocation – a budget will quickly identify where you are spending too much, and where you need to consider further investment. For example, you want to increase lead generation, so you create a paid ads campaign on social media. Or you recognise that a networking group is not well attended, so you revoke your membership.
- Reduce overspending – when you know how much you have to spend, and you recognise where funds are already committed, you can reduce any overspending. After all, if you can see that there is no disposable income this month, you will likely choose to wait until next month before investing in more software
- Debt management – by reserving these funds more readily, you avoid struggling to repay any debts and outstanding financial obligations. Prioritising these repayments will reduce your current debt faster, and stop you from accumulating any more
- More prepared for emergencies – this is fairly straightforward, but we always recommend creating a “reserve fund”, just in case an unexpected bill, or late paying client, has an impact on your cash flow
- Open up opportunities for investment – this can significantly influence an investors’ decisions regarding funding. They are known to scrutinise current, past, and projected financial performance to gauge the company’s financial management capabilities and adaptability
How can we help your business
By managing your day-to-day business finances, we can help you to stick to a budget and make smarter decisions that are based on real, tangible data.
We use relevant software systems such as Xero, HubDoc, Dext and Tripcatcher to keep business running smoothly.
Whether you need us a little or you need us a lot, our bespoke support services are flexible, suiting your workload and bank balance. Get in touch with us today to find out how we can help you.