{"id":1651,"date":"2022-12-14T23:40:17","date_gmt":"2022-12-14T23:40:17","guid":{"rendered":"https:\/\/trulysmall.com\/?p=1651"},"modified":"2023-06-21T16:35:10","modified_gmt":"2023-06-21T16:35:10","slug":"budgeting-best-practices","status":"publish","type":"post","link":"https:\/\/trulysmall.com\/es\/all\/budgeting-best-practices\/","title":{"rendered":"Mejores pr\u00e1cticas presupuestarias"},"content":{"rendered":"

Now that you\u2019ve created a budget<\/a> and know what to include in it<\/a>, what are some of the best practices for managing a budget as a small business owner?<\/p>\n

These are a few best practices that you can use to manage your business budget.<\/p>\n

Set it, evaluate it and reset it<\/h2>\n

Creating a business budget isn\u2019t a \u201cset-it and forget-it\u201d type of exercise. In fact, it\u2019s dynamic\u2026just like your business. Your business budget should anticipate and account for the highs and lows that are common in entrepreneurship.<\/p>\n

As a best practice, you should take the opportunity to reconcile your bank statement each month<\/strong><\/a> and evaluate whether or not you are operating within your budget. By building this atomic habit<\/a>, you will get a better picture into what\u2019s working and what\u2019s not.<\/p>\n

And if it\u2019s not working\u2026reset it!<\/p>\n

Like I said, your budget can be dynamic. There\u2019s a lot that goes into running your own business and you won\u2019t have all the answers at the start. Perhaps this month, you\u2019ll stumble upon your niche and they\u2019ve tripled your previous sales record! Suddenly, you\u2019re hit with triple the cost of goods sold (COGS). To take this example further, what if this is a recurring pattern that happens at the same time each year?<\/p>\n

The last thing we want to do is be hit with the same high costs next year without any preparation.<\/p>\n

Set it, evaluate it and reset it!<\/p>\n

Pay yourself<\/h2>\n

You need to pay yourself. Beyond your business, you have your own living expenses that need to be taken care of.<\/p>\n

Payroll is always something that should be included into your budget, especially if you have employees. If you\u2019re a solopreneur, you may not be in a position to pay yourself the salary you dreamed of just yet, but you still need to make sure you get paid.<\/p>\n

A subtle shift in mindset can help you manage your expenses more effectively: consider certain budget categories as recurring fixed costs. For example, let\u2019s say you\u2019ve decided to pay yourself a small monthly salary of $500. In your budget template, you want to note down that $500 as a fixed cost. That means no matter how many units I sell and\/or clients I help, I\u2019m paying myself at least $500 each month.<\/p>\n

On the other hand, if you pay yourself after all your other expenses, you may find that there\u2019s less than $500 available for you each month.<\/p>\n

By dedicating a portion of your budget to your own salary, you can still manage your business expenses while maintaining profit levels.<\/p>\n

Build an emergency fund into the budget<\/h2>\n

On a similar note, you should include an emergency fund as part of your budget. Just like in life, something unexpected can impact your business. In those situations, the best thing we can do is be prepared.<\/p>\n

It is recommended to save three to six months worth of expenses or income<\/a>, whichever is easier. We can think of an emergency fund budget , similar to our salary, consider it a non-negotiable fixed cost to running our business. This ensures that you\u2019re regularly saving money for a \u201crainy day\u201d without taking away from your profits.<\/p>\n

To take this one step further, overestimate your expenses. Budgeting is all about planning and organizing your money. If you have contingency plans for these one-off, emergency moments, then you\u2019re less likely to get caught off guard and scramble to make payments.<\/p>\n

Start early<\/h2>\n

It is important to start your budgeting process early. Let\u2019s say you need to buy a new laptop for your business and it\u2019ll cost you around $1500. Perhaps you can\u2019t afford that right now and you know that you don\u2019t want to take out a loan for this purchase.<\/p>\n

So you start planning and realistically can dedicate $100 per month towards this new laptop. That will still take you over 15 months to achieve (remember taxes)!<\/p>\n

Most business owners forget to consider their timelines when making big purchases. You must remember to account for how long it will take to finance any major purchase. That\u2019s why it\u2019s better to start the budgeting process early to ensure that you\u2019ll be ready to buy anything your business might need.<\/p>\n

Use a tracking tool<\/h2>\n

Your budget is only effective if you track your income and expenses regularly.<\/strong><\/p>\n

Budgeting expert Dave Ramsey claims that writing your budget down on paper gives you power over your expenses. Otherwise, they\u2019ll just be floating around your brain as chaos, which gives them [expenses] power over you.<\/p>\n

That\u2019s why we recommend using a tracking tool that allows you to set a budget for each of your major business categories, automatically records every transaction you make and organizes them into the correct categories.<\/p>\n

If only there was a tool like that, that exists\u2026<\/p>\n

Oh right, we\u2019re building one! Stay tuned!<\/p>\n

Find what works best for your spending habits<\/h2>\n

You\u2019re probably wondering, which budgeting method is best? There are a variety of budgeting methods that you can use and apply to your business however, the most effective budgeting technique is the one that works.<\/p>\n

There\u2019s no point setting a line in your budget to stop drinking $5 coffees if Starbucks is part of your daily routine (sorry not sorry, it\u2019s just who we are).<\/p>\n

At the end of the day, your budget should help you spend within your comfort level and leave you with the profit levels you\u2019re happy with.<\/p>\n","protected":false},"excerpt":{"rendered":"

Now that you\u2019ve created a budget and know what to include in it, what are some of the best practices for managing a budget as a small business owner? These are a few best practices that you can use to manage your business budget. Set it, evaluate it and reset it Creating a business budget […]<\/p>\n","protected":false},"author":9,"featured_media":1655,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Budgeting Best Practices - TrulySmall ","_seopress_titles_desc":"Budgeting is not a "set it and forget it" type of exercise. Learn budgeting best practices for your business in this TrulySmall guide.","_seopress_robots_index":"","footnotes":""},"categories":[25,170,171],"tags":[],"class_list":["post-1651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all","category-budgeting","category-expenses"],"acf":[],"_links":{"self":[{"href":"https:\/\/trulysmall.com\/es\/wp-json\/wp\/v2\/posts\/1651","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trulysmall.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trulysmall.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trulysmall.com\/es\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/trulysmall.com\/es\/wp-json\/wp\/v2\/comments?post=1651"}],"version-history":[{"count":0,"href":"https:\/\/trulysmall.com\/es\/wp-json\/wp\/v2\/posts\/1651\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trulysmall.com\/es\/wp-json\/wp\/v2\/media\/1655"}],"wp:attachment":[{"href":"https:\/\/trulysmall.com\/es\/wp-json\/wp\/v2\/media?parent=1651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trulysmall.com\/es\/wp-json\/wp\/v2\/categories?post=1651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trulysmall.com\/es\/wp-json\/wp\/v2\/tags?post=1651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}