This week we are going over budgets. Not everyone’s favorite subject, but one of mine! Budging a very key point to the second half of step one and super crucial for step 2 of our list this month.
A quick reminder of the steps:
1. I look at my current year and ask myself,
a. Did I reach my goals?
b. Was I on track with my budget?
2. I create my personal budget for the next year.
3. Is the current vision still the vision for the company?
When it comes to the second half of the first step, you’ll need to go over your budget with your accountant and see what your actual vs budgeted numbers are. Did you reach them? Where you over/under budgeted? It is important to go over these numbers with your accountant so they can help you understand where the problem lines, also your accountant will help you create next year’s budget.
Step 2 is your personal budget, as I mentioned in the previous blog, you need to know what your personal budget is, so you can pay yourself correctly. Based on Profit First: Owner’s Pay is a percentage you should be putting aside twice a month based on your Real Revenue. If that percentage is less than your personal budget amount, you need to increase your revenue. Which is another exercise all together that I help my clients with.
The other thing that you want to look at is debt reduction. This needs to be factored into your budget plan(s). Everyone wants a good credit score but having a lot of debt can hurt that score. Outside of your personal home, try to become debt free as soon as you can. If you are doing Profit Frist, this can be instilled as part of your profit or a whole separate percentage all together. Work with your Profit First Coach to help you out.
Make sure you are talking to your accountant and set those budgets, so you can be prepared.
Make sure you make time this week carve out a couple of hours out of your day and review steps 1b & two. If you need help or looking for a Profit First Couch don’t hesitate to make an appointment at https://go.thryv.com/site/pinabiz!