Using QuickBooks to budget for income. QuickBooks features include budgeting which should be
used as a
business planning tool to red flag when profits are not up to
From the company menu
select planning and budgets,
use the budget wizard to create a business
budget for the next twelve months. We recommend entering the one
years budget in the month of January. Small business
owners/managers do not have the personnel to perform monthly budget
variance analysis. With an entire year's budget entered in the
first month, the year to date budget reports will report the balance
available for the remainder of the year. This amount will help
managers determine what strategy changes are required to meet goals.
It also avoids timing differences which always pop up when the vendors
invoice later or earlier than anticipated.
Monthly, from the reports menu select budget & forecasts
to generate the budget vs actual report.
budget reports are easier to analyze by looking at
Research discrepancies and alter business plans as
needed to bring your financial performance back in line with budgeted
Plan your income and expenses with
your employees. It helps to have them involved in the process if
you expect to hold them accountable for the outcome. A budget needs to
reflect the priorities and feelings of everyone who has to live within
Include some cushion in your plan. Don't budget to spend every
last dollar. If you plan from the start to spend every dollar you earn,
undoubtedly an unexpected expenses will arise when you don't have any
Regularly compare your actual income and outgo to your planned income
and outgo. This part of your plan is probably the most important.
Make adjustments as necessary.
When you have problems with your budget -- and you will -- you'll know
that your plan isn't working, but you will have time to make strategy
changes before the problems escalate to a point where goals are
not met, company moral decreases, or financial troubles begin.
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