Happy New (financial) Year!!
The beginning of a new year is a great time to not only reflect on last year’s performance (and the key drivers towards that performance), but also to set some goals for the next 12 months. Without goals, we are pretty much running blind, with no real posts to aim for.
A budget allows you to set up financial goals so that you and your team can work towards having a successful year achieving what you set out to.
Now, you don’t HAVE to set a budget. You can just continue doing what you currently are, and hope for the best. However wouldn’t it be great to identify that things aren’t running to plan, part way through the year? This will give you an opportunity to make some changes throughout the year, still working towards achieving you goal.
Budgets don’t need to be complicated. They don’t require fancy formulas or amazing excel skills. They just require a few hours of your time to think about, plan and execute.
And the best part of all is that Xero has a great budget manager function that will allow you to see how you are performing to budget, at any point throughout the year.
And by the way, you don’t need to have a business in order to set a budget. Individuals can also greatly benefit from having a budget, particularly if you have a financial goal to work towards like buying a home or going on a holiday.
As always, your accounting division (us!) are here to help with any of your budgeting needs.