Why You Need A Budget Planner In 2022

With rising inflation, interest rates and supply chain issues dominating the headlines, an in depth budget planner for business is now all but essential. 

With ongoing lockdowns, density restrictions, shipping delays, staff shortages and even natural disasters, it’s no secret that navigating the world of business hasn’t been easy over the course of the last two years. Although many business owners saw a light at the end of the tunnel once state and international borders reopened, we now have another beast to wrestle with: inflation. 

Like it or not, the inflation rate influences almost every aspect of our day to day lives. From lettuce tripling in price to skyrocketing interest rates to raising the minimum wage, it’s evident that everyone is feeling the pinch - especially small business owners. As a means to combat the ever growing list of financial curve balls, it’s never been more clear why you need a budget planner. Regardless of whether you’ve never had a business budget or your existing one is in dire need of an overhaul, the good news is that there’s never been a better time to get started. 

The Importance Of A Business Budget Planner

There’s no way to sugar coat it: inflation is a budget killer. As the purchasing power of money decreases, everything else goes up. In turn, even cash flow positive business owners are left with an impossible decision: do you absorb the rising operating costs to keep your customers happy, or do you pass the prices on and risk their ire?

In order to make educated decisions that have the potential for enormous ripple effects, you need access to the data - and this is where the importance of a budget planner for business comes in. 

In a nutshell, a business budget is a spending plan for your business based on your income and expenses. Much like a standard personal budget, they identify your available capital, estimates your spending, and helps to predict revenue. A budget can help business owners to plan for the future, create a buffer fund, and identify any unnecessary spending.

While the aim of the game for a business budget planner is to accurately forecast a brand’s income, expenses, and profit, the margin for error is much smaller than when compared to a personal budget used for an individual or household. In addition, business budget planners can also help to improve the health of an enterprise’s cash flow. Without positive cash flow, business owners risk falling short when it comes to paying for expenses. Thankfully, the good news is that there are a wide range of options for introducing a business budget planner. While some operators are content with a budget spreadsheet, others prefer much more comprehensive options such as those sourced from accounting software giants like Xero. As a happy medium, there are also plenty of templates readily sourced online for those looking for the best of both worlds. 

As it’s unlikely that inflation is going to settle down anytime before 2023, it’s important to have a plan to protect yourself and your assets from further increases to interest rates, utilities, and other cost of living essentials.  As such, if you’re a business owner looking to implement a cash flow management system or introduce a business budget planner, now is the time to partner with a strategic advisor to take control of your financial future - and this is where the team at Muro can help with a business health check. 

Take Control Of Your Financial Future With Muro

Whether you’re starting a business, purchasing an existing one, or even reevaluating where your current enterprise stands - all require some form of financial know-how if you hope to successfully navigate your legal tax requirements as well as hitting your financial and business goals. 

However, if understanding the legalities that surround your business or finances isn’t your strong point, then it may be reassuring to know that you’re not alone. In fact, many businesses (big and small) enlist the services of an accountant in order to free up their time while knowing that their financial obligations are already taken care of by the professionals. 

Ultimately, the team at Muro believe that every business owner is an entrepreneur. However, accounting does not discriminate - finances break down barriers and are not territorial. If you would like to take a deeper look into your finances, please get in touch with us at Muro today to ensure that you’re on the right path for success.