HomeHome SearchSearch MenuMenu Our productsOur products

Here's how to create a budget to better structure your company's finances

by , 08 September 2014
You need to create a structure to manage your company's finances properly. Otherwise, you may lose control over your expenses. This is a one way ticket to financial disaster.

But creating a strong budget can help you do this without much hassle. This is because a budget gives you the ability to plan, structure and prioritise your finances.

Here are five steps you can follow to effectively create a budget to structure your company's finances...

 

Follow these five steps to create a budget to structure your company's finances 

 
Create a main budget that has all of your general expenses and income. This will help give you a rough overview of your financial breakdown.
 
You should include, for example, your:
 
- Production expenses;
- Transport costs;
- Storage expenses;
- Salary costs; and
- Rental expenses.
 
Step #2: Create sub-budgets
Once you create your main budget, look at all the areas you budgeted for. For example, if you take your sales expenses, you must create a budget to manage the money you assigned to that area. 
 
Create a sub-budget for each of your separate areas to ensure you use your money effectively.
 
Step #3: Link each of your separate budgets to your main budget
If you already use Excel to create your budgets, this is easy. On Excel you can link different spreadsheets together.
 
*********** Hot off the press  ************
 
Three accounting record risk areas to watch out for
 
 
*************************************
 
Step #4: Distribute the budget you're proposing to all of your managers
Get their feedback and sign off. Once everyone is happy with the budget you can lock it, if you use Excel, so no one can change it. 
 
Step #5: Distribute the final budget
Ensure all of your mangers have a copy of the budget, specifically the one relating to their particular division. Get all the managers to sign to say they received it.
 
By following these five steps you can create a budget that effectively structures your company's money successful.


PS. Here is an amazingly simple way to manage your financials, with the Master Budget Series
 


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>