What Are the Benefits of Budgeting?

“Ideas are easy. Implementation is hard.”  – Guy Kawasaki, co-founder Alltop

Let's assume that you have been getting away with creating or maintaining a budget thus far and see no need to make the additional time and create one.  But, what about the two o'clock meeting next week you have with a potential partner or investor?  How will you show them the potential growth of your company?  A budget is a great way to display your businesses objectives and goals to a third party.  So, why wouldn't you take the time to create an exercise this important? 

Research shows the primary benefits of budgeting have been identified as follows:

1. It requires all levels of management to plan ahead and to formalize goals on a recurring basis.
2. It provides definite objectives for evaluating performance at each level of responsibility
3. It makes you more money by showing you if your realistic goals were met.
4. It creates an early warning system for potential problems so that management can make changes before things get out of hand
5. It results in greater management awareness of the entity's overall operations and the impact on operations of external factors, such as economic trends
6. You will make decisions MUCH faster - for example, can you afford to rebuild your website or can you hire a new manager for the IT team, well your budget can tell you this.

By now, I hope that you are seeing the benefits of creating a business budget and how  it aids management in their business decisions.  

Fontenot & Associates Solutions LLC can develop an extensive guide for your key Accountant, to ensure the development and detail support for the budget is accurate.  A budget is only as accurate as the data used.  Visit our website today to schedule your consultation - today!