Reviewing your company’s cash flows, budgets, and balance sheets may be the last thing you want to review as a business owner. However, proactively reviewing your financial statements is essential and may identify problems before they become an issue. Here are three financial questions you should be asking.
Why Do I Need a Budget?
Creating and sticking to a budget can be challenging; however, they are a necessary management tool. Think of your budget as a financial roadmap for your business. They are a valuable tool to help maximize profits, recognize when things are amiss, and manage problems.
When developing a budget you might consider:
- Utilizing your experience and results from your previous years in business.
- Identifying industry benchmarks through databases such as Industry Canada, Privco and community knowledge sources, such as Small Business BC.
- Adjusting benchmarks for local competition.
- Consulting a professional accountant.
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