While the hands-on nature of running your business is often the most exciting, fun, and satisfying, many overlook the doubtlessly tedious task of number-crunching. However, creating a budget can help your business thrive and become more financially rewarding, and isn’t nearly as difficult as it sounds, with our help at CDC.

A Successful Budget

Key sections of a successful budget outline your in and out-goings; gather information on what your business owns and owes; and compiles this information to give financial feedback on your business’s revenue.

An Income Statement, or Profit & Loss Statement Report, should show all of your incomings and outgoings. Your income, or revenue, is how much your business is generating. It is helpful to break this down into recurring income and expected income, so that you know exactly what the future income for your business may or may not look like. Recurring customers and reliable contract work can be classed as recurring income, and expected income is a forecast of what you think your business should be making as a result. Expenses, or costs, are all the money leaving your business to maintain its performance. Costs like rent, utilities and payroll are recurring expenditures, while occasional payments such as office supplies are called sundry costs.

Why Budgeting Matters

When creating a budget for your business, calculating all the expenses and incomes can be incredibly daunting. However, doing so can add real profitability to your business – if you’re making a loss, you will be able to see where to cut back on spending. But if you’re making an overall profit, you can explore options as to what to do with your success. You might want to keep the profits in reserve, for a period of lower expected income; hire new staff; or reinvest the money back into the business to create greater profits.

While we understand that you’ll want to keep a close eye on your business’s finances, here at CDC we offer to take a look over your books, and make sure you’re on the path to success. With our online systems, we can efficiently take account of all your company’s incomings and outgoings, create effective budgets to increase your revenue, and make accurate predictions for your future – all while giving you online access to our advice and suggestions. Having CDC take over your financial responsibilities is giving your business a fighting chance to thrive, and you the chance to take care of what is important – implementing your dream career. For more information, please don’t hesitate to get in touch.