Business owners are experts in their trades and specialties, but some struggle or do not have much experience with a very important skill - corporate budget planning. Budgeting and matching expenses to revenue are essential for business owners to have a clear picture of whether or not they have adequate funds to sustain their operations, expand, generate enough income to pay salaries and remain profitable. Without a budget, businesses run the risk of overspending and also not properly funding growth opportunities.
While most owners or managers can provide a good estimation of what funds will be needed to operate in terms of dollars and cents to create a budget, there are some simple tips that can take your corporate budgeting to a better level and save your business money in the long run.
A budget cannot be made at the beginning of a fiscal year and be forgotten about until the end of the year. Every month, business owners and managers should review their budget and update with new cash flow projections and realistic spending categories as required.
Many employees have access to spend business funds whether it is in the form of petty cash or a corporate credit card. Not all employees realize the importance of sticking to a budget and how their spending can impact the overall financial health of their organization. By creating incentives for employees to meet their budget, such as a performance bonus, is an excellent way to keep staff on track and help control business spending.
Target Business Debt
For many new businesses, start-up debt and loans will be in the picture for at least several years to come. Debt accumulates interest charges, which are expensive. When you design your annual budget, look for any extra revenue that can be used to pay down corporate debt more quickly.
Use Prepaid Fuel Cards
If you have employees that travel, budgeting the proper amount for fuel costs and possible personal vehicle maintenance is important. Instead of having employees pay out of pocket, completely control the amount spent on fuel, the type of fuel purchased and where fuel can be bought by using prepaid fuel cards. Purchase requests must be approved by a manager before funds are loaded onto the card - at which point they are available to be used immediately. With Emburse fuel cards, receipt documentation is automatically captured for real-time purchasing visibility.
In the end, budgeting can be made simple, especially with the use of software and Emburse prepaid debit card solutions. If you would like a personalized demo on how we can help you control costs and stick to your budget, contact us today.