5 ways to keep your small business budget on track
Keeping small business budget on track
QuickBooks offers small business owners across Canada solutions to their everyday challenges. More than accounting software, QuickBooks is an all-in-one business software that helps entrepreneurs organize their financials, provides business insights and more.

For a small business, keeping an eye on your cash flow and expenses is an easy way to make sure you’re remaining on your set budget. It’s important to learn best practices, tax-saving tricks and the art of balancing expenses and income. With this in mind, why not use a cloud-based software? It can help run reports by taking information from your expenses, income and inventory, and help give you a complete and accurate image of your small business finances. You can further stay on top of your small business budget with these five quick tips.

1. Be sure to maximize your tax deductions

Running a business is a lot of work and you have many tasks to keep track of on a daily basis. It’s vital to make sure that you’re keeping track of your business-related expenses. Not only will this let you keep record of how much you’re spending on your small business, but it will also allow you to maximize tax deductions come tax season.

It’s important to track everything that is related to running your business, which includes rental payments and insurance costs. Common business deductions that you’ll want to track too include:

  • Office supplies
  • Meals
  • Equipment
  • Mileage
  • Utility bills
  • Technology (such as smartphones and laptops)

    But, how do you make tracking expenses easier? Say good-bye to shoeboxes and worn-out receipts with a receipt scanner that will automatically store your receipts on a cloud-based server. You can use a receipt scanner to keep a record of your expenses, from equipment to business lunches to inventory.

    2. Keep accurate projection records

    Projection records can do a lot to help set the tone of staying within your fiscal budget. But these projections only work if they are based on accurate information. Using software to help keep track of job costing and profitability will not only help you keep reliable projection records, but it will put you in a better position to stay on financial track.

    Using job costing software will help keep your projects on budget by providing a precise estimate for both you and your clients. These accurate reports will give you instant insights into your budget so you can make any necessary changes to spending immediately. This means that there will be no surprise costs after the project is done.

    3. Track your employees’ hours digitally

    Tracking your employees’ hours is an effective way to keep track of your payroll expenditures. By using an online payroll system, you ensure not only accuracy, but convenience for your workers too.

    Perfect for contractors or employees that work on-site, they can track their hours on-the-go. Using a time tracking app makes it easy to access, and your employees can input their hours wherever there is a Wi-Fi connection. Tracking in real time cuts down on human error, which means your payroll can run at its most efficient and budget-friendly capacity.

    Plus, with its ability to keep digital records, you’ll have a more exact payroll estimate for next year’s budget.

    4. Run accurate financial reports

    Get everything you need to ensure your business is running on budget with all of your financial reports in one place. You can do this by using a reporting dashboard for a snapshot of the overall financial health of your company. Getting an overview of your balance sheet, cash flow report and income statement in one place will allow you to stay organized and give you a better understanding of where you stand with your financial plan.

    Keeping tabs on cash flow and creating a roadmap for your spending helps keep your budget on track. Staying informed is the easiest way to stay on top of your fiscal goals.

    5. Try to keep your expenses and income balanced

    Keeping things balanced is an important part of any business, and an essential aspect of staying within your budget. There are going to be times where you feel like you’re spending more than you’re making, but as long as you keep your balance sheet in the black, your company is on the right track.

    A watchful eye on your inventory, income and expenses will help you have more control over your financial health. This balancing act is made easier with automated tracking of sales and inventory. Updated in real-time, automated tracking can help you get a clearer picture of the success of your business and will allow you to make any necessary adjustments to your budget.

    Using an automated system with real-time reporting is the best way to keep your small business budget on track. Not sure which automated system to go with? QuickBooks Online has all the built-in features you need to help your small business run smoothly.

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