- Avoiding cash flow crunches
- Keeping your company afloat during lean times
- Keeping your credit rating in good standing
- Assisting you in pricing products and services
- Facilitating your ability to obtain loans and lines of credit
- Helping you budget properly for growth
Action Steps
The best contacts and resources to help you get it done
Include startup costs
Launching a business requires a host of one-time expenses, such as deposits, office furniture, leasehold improvements, signage, licenses and permits.I recommend: Use the startup cost calculator from BusinessKnowHow.com to estimate your startup business expenses.
Include fixed costs
Fixed costs include taxes, office rent, utility bills, phone bills, insurance, legal and professional fees, postage, supplies, technology, salaries and advertising and marketing costs.I recommend: Use the monthly business expense calculator from CSGNetwork.com to tally your totals. Find a number of additional operating expense calculators at iFigure.com or download a budget projection form from Gaebler.com
Include variable costs
Any cost that changes depending on the number of products produced or sold is called a variable cost. This includes charges for raw materials, supplies, packaging and transportation. Direct labor costs, such as sales commissions, also fall into this category.I recommend: Download detailed expense estimate and expense budget templates — available in Excel from Microsoft — where you can list your variable costs. BPlans.com offers a number of business calculators that include variable costs.
Use forecasting software and services
Some software and Web-based application service providers (ASPs) have built-in forecasting and budgeting tools to help you get a handle on your expenses.I recommend: Take an online tour or sign up for a demo of Alight Planning software, which provides budgeting and forecasting tools. Hyperion Budgeting and Forecasting Solutions combines sophisticated financial modeling with Web-based Microsoft Office Small Business Accounting offers over 60 customizable reports to aid in forecasting your budget. Web-based Expense Watch analyzes trends in your business expenses so you can improve the accuracy of future forecasts.
Compare forecasts to actual expenses
Improve your forecasting ability by comparing your forecasts to your actual expenses. Note where your forecast went wrong and why so you can improve accuracy in future forecasts.I recommend: VirtualSpending.com software automatically calculates a comparison of your forecast figures with your actual expenses on a monthly basis.
Tips & Tactics
Helpful advice for making the most of this Guide
- Hire an accountant to consult with you about business expenses you may not be aware of so you don't get surprised down the road.
- When forecasting business expenses, consider breaking the forecast down by employee or by department. This way, you can accurately determine where money is spent and by whom. Salespeople will likely spend much more on travel and entertainment, whereas administrative employees will spend more on office supplies.
- Don't wait for lean times to seek approval for a business line of credit. It's easier to secure a loan if you apply when revenues surpass expenses.
Budgeting & Forecasting Software
Budgeting software at PROPHIX. Your source for forecasting, corporate budgeting, strategic planning, consolidation, financial analysis, scorecarding.
Free Webinar | Request More Info | Our Solutions | Guided Tour
www.PROPHIX.com
Budgeting software at PROPHIX. Your source for forecasting, corporate budgeting, strategic planning, consolidation, financial analysis, scorecarding.
Free Webinar | Request More Info | Our Solutions | Guided Tour
www.PROPHIX.com
Corporate Budgeting Made Easy - Free Budget ROI Tool
Corporate Budgeting can be Frustrating for Everyone Involved. Quickly Calculate How Improving Budgeting for Your Business Improves ROI. Free ROI Tool!
XLerant.com/ROI
Corporate Budgeting can be Frustrating for Everyone Involved. Quickly Calculate How Improving Budgeting for Your Business Improves ROI. Free ROI Tool!
XLerant.com/ROI
Budgeting & Forecasting Software
Use Budget Maestro for budgeting, forecasting, consolidation and what-if planning. Cash flow forecasting. Try it free for 30 days.
Product Tour | Free Test Drive | Webinar | CFO Research
centage.com
Use Budget Maestro for budgeting, forecasting, consolidation and what-if planning. Cash flow forecasting. Try it free for 30 days.
Product Tour | Free Test Drive | Webinar | CFO Research
centage.com
Budgeting Software
AccuFund offers government, municipal and non-profit organizations a full accounting software suite designed with an easy-to-use windows interface.
Non-Profit Suite | Municipal Suite | Webinar | Contact Us
www.accufund.com
AccuFund offers government, municipal and non-profit organizations a full accounting software suite designed with an easy-to-use windows interface.
Non-Profit Suite | Municipal Suite | Webinar | Contact Us
www.accufund.com
Free B2B search marketing whitepaper, B2B Search Marketing Strategy Guide: Advice From the Pros.
