The following are some tips on how to ensure the budgeting
exercise for the business in on track and effective:
Checking industry standards and sentiments of the time is
something that needs to be done periodically as the percentages of
revenue earning possibilities is often affected by the market
behaviors.
The smaller the business entity, the more likely it is to be effected
by the volatility of the market, and this is especially so when there
is a downturn in the economy.
Designing an accurate spreadsheet is another essential element
that should be included as part of the budgeting exercise. Making
clear estimates on the revenue amounts expected against the
percentages allocated toward tools and materials relevant to the
business will give a clear overview of expected expenses incurred.
Factoring some degree of slack and avenues to cut cost can also be
clearly reflected in a comprehensive budgeting exercise.
Understanding that there is bound to be a lot of movement within
the economy that will eventually have some bearing on the
