Struggling With Your Budget? Get Your Accountant to Help

Many financial planning experts offer the opinion that budgeting should be taught to every secondary school student in the country, and for very good reason. Without an understanding of how to properly manage finances, individuals, households, businesses and even countries can quickly become mired in debt, as we have seen over the past three or four years. Hard-earned money is spent frivolously and never given the opportunity to accumulate long enough to build wealth.

Unfortunately, people who know how to budget often choose not to for various reasons. They may lack the personal discipline to take time out to maintain a budget, they may not see the link between budgeting and goal-setting or, as is often heard, “there’s no point in doing a budget when you have no money.” Of course, this is the reason why people have no money, but it is difficult to change this mindset once it is established.

Budget Discipline Needed to Keep Businesses Viable

Lack of budget discipline is one of the major factors that contribute to the collapse of a business. Framing a proper budget is not simply a matter of throwing a few figures onto a spreadsheet and hoping for the best. It requires a concerted effort by all sections of the business to look ahead twelve months for the sources of their expected income, and the likely expenses that will be incurred.

Large organisations are very adept at framing a fairly accurate budget that is monitored and updated on a regular and possibly daily basis. This tells them immediately if there are gaps in their expected income that need the attention of the sales team. Perhaps a particular expense category is beginning to blow out and needs corrective action.

For small businesses and individuals struggling to put together a budget, professional assistance is available. A Brisbane accountant will have the skills and the systems in place to help clients set long-term goals, both business and personal. Once these have been identified, designing a budget to get there is a matter of setting down details of income and expenses. This is the easy part. The hard part is making the adjustments to spending so the goals can be realised.

Tracking Spending Often a Wake-up Call

If the person or business undertakes this with a positive attitude, it can be a very rewarding exercise. Usually people have no idea where their money goes until they are forced to write down every minor item of expenditure. Suddenly the $50 a week they spend on magazines or the extra groceries they buy that languish in the pantry

for months take on a whole new perspective. Once they realise that they can actually control their finances, they feel quite empowered.

By getting professional advice on how this wasted money can be invested for growth, the business or

individual is well on the way to building a wealthier future. Successful budgeting is very much a question

of attitude and of having something to aim for. Accounting professionals are well placed to assist clients

to get their budgets up and running, but sticking to them is the responsibility of the individual. Click here

for more information.

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