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How to best monitor your budget
Quicken is a program that has been around for decades and many people learned to budget on Quicken in high school finance classes.If you have experience using this or any other program for your home finances, you will find that it is just as easy to use a business version for business budgeting and financial planning.If you haven't had experience with a budgeting program, you might look at the different budgeting software choices at your local software store.There are literally hundred of programs available.The key will be finding one that is user-friendly and suited for the type of business you are running.
Once you have a budget in place the fun begins.You need to keep close watch on the budget at all times.If you predicted earnings of $5000 in the first month but you only made $3000, you will have to adjust the budget to reflect the reduction in revenue.Having a budget is almost meaningless if you don't monitor the budget carefully and make adjustments when necessary.When monitoring your budget there are a few questions that you need to constantly ask: - Are you under or over estimating your income and why?To have a successful budget you have to know how much money you are looking at.If you are off in your forecast, find the underlying cause of the discrepancy and either fix the problem or adjust your budget. - What does each budget section look like?You might end up right on target but only because you have underestimated one section of the budget and overestimated another.This does wash out but your still need to consider why you are over and underestimating the revenues and expenses of the various departments.
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