Business Loans and Budgets – Getting Ready for 2018Small business owners can be smart about the coming year by planning ahead. That means considering your budget for the coming year, while reflecting on last year’s, and thinking about using business loans. By preparing a budget for next year, you get several benefits, including being ready to pay taxes. Budgeting can also help you figure out how your business can grow and will help you identify any needs you have that could benefit from financing. Here are some things you need to do to get your budget ready for 2018.
Look over Last Year’s Budget and Assess Any Business Loans
A review is the best way to prepare for an even better year ahead. Look over your budget for 2017. Figure out how closely you followed it and where you could have done a better job of sticking with it. Learn from the year’s mistakes as you prepare a budget for next year. Also look at any business loans you took out last year. See how they fit into your budget, the benefits you got from them, and anything you would do differently with financing.
Take a Hard Look at Expected Expenses, Including Where Business Loans Fit
To make a budget, start by looking at your expenses. Start with the previous year’s actual expenses and compare it to what you had expected. Were you close or way off? This can help you estimate expenses for next year. Include any expansions you hope to do for your business, which can be costly. Then, start to think about business loans and where they fit in with your expenses. Do you expect to use more business loans this year, or about the same as last year?
Estimate Your Income and Business Loans
When you have an idea of what you’ll spend next year, you can estimate how much income you think you will generate. This can be tricky, but use last year’s earnings and projections for how you hope to expand this year to come up with an educated guess. Here is where you can also include the money you think you will use from business loans. This should stay separate from income, of course, but it can be counted among the money you will be able to spend next year.
Write and Review Your Budget Regularly, Adding in Business Loans as Needed
Once you have done all the preliminary work, you can actually write up your budget for the coming year. This will help guide your business activities, ensure you have enough money for all expenses, including taxes, and will help you figure out where you can save and where you can spend. Your budget will also guide your use of business loans from Booming Business Loans, an important element of financing for small businesses. Be sure to review your budget throughout the year, at least once a month, to make sure you stay on track or that you add income or expenses as needed.