The Importance of Budgeting
Whew, you made it through year-end and your tax filing! You have all of 2018 to plan for your next tax filing and that's plenty of time to figure out the new tax legislations, right? No!
Now, is the time to start thinking about your 2018 tax filing(s) and how you will manage your business this year. Not only will the decisions you make now affect your taxable income, but they will also affect your ability to perform as a company.
What's your plan for the year? What happens if it changes? What's the risk if your "worst case" scenario happens? Our best clients work with us to create a monthly budget plan so they can answer these questions. Not only does it manage their risk, but it also sets goals and allows them to hold themselves accountable. Our best clients work with us to set annual budgets that are broken down by month. It allows them to ask the question every month: Did I make my goal?
If you plan on growing during the year, what will your expenditures look like? How much more will you have to spend to grow your revenue? Will it eat into your bottom line? Will it increase or decrease your taxable income? Luckily, you can run these reports on-demand with our favorite software: QuickBooks Online!
We don't have a crystal ball, but we have the next best thing!