Build Your Budget Now to Set the Foundation for a Successful 2022
According to a recent survey, 54% of small businesses followed a formally documented budget in 2021. It’s good that the majority of businesses are planning their spending in advance, but if 46% of businesses don’t have a budget, that means millions of entrepreneurs are managing money on the fly.
That approach might work for a while, especially in the early days before the business finds its footing. But operating without a budget soon becomes a handicap…before it becomes a liability.
Businesses that don’t have a budget will find it harder to secure loans and attract investments. That’s because mature businesses plan their financial future, compared to businesses that don’t budget and put their cash flow at risk as a result. Budgeting indicates a company that’s serious about meeting goals for growth and managing money wisely. More importantly, a budget is a prerequisite for effective business planning. Without one, plans stall out or go astray.
That’s why building a budget should be a top priority at the start of 2022. Making wiser decisions throughout the year and reaching year-end goals by next December depends, in no small part, on having a budget in place early. Building one soon matters, but building the right budget matters just as much. For businesses that are new to budgeting or dealing with new budgeting challenges (all too common during Covid), the pressure is on to get a smart, strategic financial plan in place ASAP. Here’s the shortcut.
Hire Experts to Build a Budget
Building an effective budget requires a close look at both the past and future. Last year’s numbers inform what this year’s goals should be, suggesting where and how much to invest to achieve ambitious targets for 2022. Forecasting the market conditions and competitive landscape over the near term helps temper ambitions with reality. A good budget considers lots of overlapping forces before it even gets started finalizing the numbers.
If the in-house accounting team lacks the time, size, tools, or experience to build a budget in the first quarter, turn to experts who specialize in this skill.
A team of advisors equipped with leading financial technology can help clients understand their financial performance and potential in new ways. That leads to a budget that balances optimism with pragmatism, facilitating an upward trajectory for the year ahead while mitigating the risks in the way. More than just a guide for spending, great budgets show businesses exactly how to be successful month after month.
Proseer builds great budgets by working closely with clients to understand their numbers, history, and goals. And we leverage the extensive resources on our team to work fast. It’s not too late (or too hard) to put a budget in place for 2022. Contact us to get started.
