Today’s guest post is by Kelsey Castle:

Pointers for Monitoring Your Start-Up’s Finances

Pointers for Monitoring Your Start-Up’s Finances 

When it comes to a business budget, it’s usually the role of the finance guy to keep track of expenditures and income. However, for small businesses, the owner and the finance guy might be one and the same. As an entrepreneur, you want to keep an eye on your company’s finances and budget to make sure the business is on a solid financial track – so make a solid plan rather than keeping a running tally in your head or jotting numbers down on a cocktail napkin. 

An entrepreneur should keep her eye on a lot of things – including the budget.

A basic small business budget shows how you plan to allocate your resources with the goal of growing income. It takes into account revenue – which can come from sales, accounts receivable and interest – as well as expenses, which includes rent, payroll, supplies, marketing, and other costs. Plenty of budgeting tools exist for you to keep a keen eye on these numbers. You can choose from online programs, desktop programs, and even some that have smartphone apps for budgeting on the go.

A solid financial plan is particularly important as your business continues to grow – it creates a financial roadmap, particularly when you’re looking at year-to-year operations. At the fiscal year’s end, take a look back at the budget and see how well you followed it. Variances are bound to have occurred, and that doesn’t mean you did anything wrong – but it might mean you need to make some adjustments for next year’s budget. With a sharp eye on your finances, you can create a plan for future growth. As your business becomes successful, you can take money into a special reserve account for potential business opportunities. During an economic boon, you might want to have that cash on hand in order to make quick, smart business decisions. If things slow down, you’ll also be happy to have that cash to continue to pay regular business expenses. 

Organization is key to an entrepreneur’s successful budget, even if they’re creating that budget at home.

A good budget is all about being organized and detailed. Using one of the handy budgeting tools now available to help your small business, creating a solid financial plan has never been easier. Plus, as an entrepreneur, you’ll be able to rest easy knowing that your business is on the right track.

Kelsey Castle is a freelance writer and editor who specializes in small business topics. She has a degree in journalism and experience in both monthly and daily publications.