The year is coming to a close, so it’s a great time to ensure that your finances are in order. If you’re operating a business (at any scale), budgeting is a key tool to operationalise for your success. In this week’s article, we’ll be running through three of the best budget practices for business, so that you can stay ahead of the game.
Always be prepared
The best way to prepare for the budgeting process is to get in early. This doesn’t mean jumping the gun though! During the year, there are definitely periods where business is in flux, and others where it’s more stable. The best approach to consider these periods of stability as your base mark, and plan for the ups and downs that inevitably come throughout the year.
Use budgeting to unite practices across your business
When preparing a budget, it’s more than a simple financial exercise. It’s all about creating a plan that will represent your organisation’s goals and priorities moving forward. Putting together a plan that will work across the board is key in drawing different factions of your business together, and ultimately creating a more streamlined process.
Plan for 80% confidence levels
In budget preparation, there’s always the question of whether or not your budget should realistically represent business practices, or whether it should represent a stretch goal. A stretch goal is an alluring prospect, but rarely do things happen in reality as they do in theory. So it’s important to allow room for greatness in your budgets, but strive to meet a confidence level of 80% so that you can be sure (almost) everything will work out as it’s meant to.
At Acra Machinery, we sell tools such as press brakes, as well as other metal machinery to support you in your business progress. Get in touch by calling 03 9794 6675 for more information today.