Your business budget is a critically important tool that will help you to understand how your business in travelling. Therefore, it should be reviewed regularly (the D&B team would suggest monthly) to make sure you are on top of things and don't get hit with any nasty surprises.
Creating a budget is one of, if not the most, critical steps you can take to help ensure your small business maximises its chances of surviving beyond the first few years.
Developing and maintaining a budget will give you something to aim for and work with. Each month you can replace the budgeted figures with actuals to create a 'rolling budget'. This will tell you what your yearly results will be if you meet your budget in the remaining months of the year. This exercise will also help you to identify areas that may need attention in terms of your income and expenditure.
Essentially, a budget helps you to determine a break-even figure and also to set targets for each month. By reviewing your budget regularly you to compare your actual performance against your goals and quickly identify problems. Preparing a budget provides an opportunity to think about where you want your money to go.
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