813-671-3228 | support@inthenoh.com

Noh Hassle Bookkeeping
  • Home
  • Services
    • Packages
    • Bookkeeping
    • Payroll
    • Advisory Services
    • Consulting for QuickBooks®
    • Training for QuickBooks®
    • Cloud Accounting
  • Products
    • QuickBooks Online
    • QuickBooks Online Advanced
    • QuickBooks Desktop
    • QuickBooks Enterprise Solutions
    • QuickBooks Point of Sale
    • QuickBooks Payments
  • Industries
    • Services
    • Construction
    • Medical and Health Care
    • Real Estate
    • Retail
    • Restaurant
    • Wholesalers and Distributors
    • eCommerce
  • Testimonials
  • Resources
    • Forms
    • Recommended Software
    • Links and Complimentary Reports
    • Mobile Accounting
  • Blog
  • About
  • Contact
    • Contact
    • Client Login
July 11, 2013

Budgeting Breakthrough

Kim Noh Accounting, Bookkeeping Tips, Business Tips, Cost-Savings Tips, Decision-Making Tips, Expense Reduction Tips, Profitability Tips

Tweet
Share
Share
Pin

When you hear the word “budget,” what do you think about?  Most people would say something similar to “Ugghh!” If you would rather do just about anything besides create a budget, you’re not alone.  The word “budget” brings up connotations of endless numbers, constraints, the opposite of freedom and creativity, and hard work, none of which are very desirable.

Yet, the benefits of a budget are huge.  Budgets can help you with cash flow improvements, keep you on track for higher profits, and alert you to items that need further action.

From “Budget” to “Profit Plan”

To be successful with budgeting, we need to get rid of all of the connotations that go with the word.  Perhaps it might work if we rename “budgeting” to “profit planning.” And then, rather than focus on how little we should spend, let’s start with how much revenue we’re going to make.

Revenue Clarity

It’s simple to create a revenue plan if you go backwards.  What revenue goal would you like to hit this year?  Just like we would never get in a car without a final destination, a revenue plan gives us a number to aim for in our businesses.

Once you know your number, then we can use averages to come up how many sales or clients we need to generate in order to meet our revenue goal.  Here’s a quick example:  Let’s say you want to reach $5 million in revenue this year.  If you average order is $10,000, then you need 500 sales.  If you have multiple products and services, then you’ll need to sum the product of the average sale times the needed number of sales for each line.

From there, you can make marketing and production plans based on the number of sales or clients you need.

Protecting Your Profit

Think of the expense side of your “profit plan” as protecting your profit margins so that you can ensure financial gain from all the hard work you do.  Setting budget limits on spending will allow you to control overhead and other items so you can keep more of what you make.

Exceptional Reporting

A great “profit plan” report will provide several things.  You can compare budget to actual, or better yet, just be alerted to the accounts showing exceptions.  You can also get an income statement that compares the current period with the prior year period so you can see how far you’ve come.  One last option is a benchmark report which provides industry averages so you can measure how you fare compared to other companies in your industry.

A “profit plan” is a great tool for your business.  If we can help you with the process or provide you with custom reporting, please give us a call.

Tweet
Share
Share
Pin
Need an A/R Makeover? A Quick, 5-Item Best Practice Checklist Mobile Accounting

Related Posts

accounting technology, Blog, Business Tips

Fighting Cybersecurity Threats in Your Business

Accounting, Blog, Business Tips

The Concept of Independence in Accounting

Blog, Budgeting, Business Tips

Ten Places to Look to Find More Profits

Archives

  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012

Categories

  • Accounting
  • Accounting Software
  • accounting technology
  • Blog
  • Bookkeeping
  • Bookkeeping Tips
  • Budgeting
  • Business Development
  • Business Growth
  • Business Tips
  • Cloud Accounting
  • Cool Tech Tools
  • Cost-Saving Tips
  • Cost-Savings Tips
  • Customer Service Tips
  • Decision-Making Tips
  • Expense Reduction Tips
  • Finance Management
  • Management Tips
  • Marketing Tips
  • News
  • Payroll Tips
  • Personal Development
  • Profitability Tips
  • QuickBooks Help
  • QuickBooks Software
  • QuickBooks Training
  • Social Media
  • Tax
  • Tax Resolution
  • Time Management Tips

Sitemap

  • Home
  • Services
  • Products
  • Industries
  • Testimonials
  • Resources
  • Blog
  • About
  • Contact

Contact Us

Bookkeeping Services and Services for QuickBooks®

Noh Hassle Bookkeeping

813-671-3228 | support@inthenoh.com

867 W Bloomingdale Ave. Unit 6746, Brandon, FL 33508

¡Hablamos español!


Intuit, QuickBooks, and QuickBooks ProAdvisor are registered trademarks of Intuit Inc. Used with permission under the QuickBooks ProAdvisor Agreement.
© Noh Hassle Bookkeeping 2021
Site Design by Accelerator Websites