Small Business: Tips for Practical Planning and Budgeting

MONTVALE, N.J., Nov. 18 /PRNewswire/ — Small business owners and managers face many uncertainties about the future. But the future of a business is not entirely a matter of chance. Proper planning and budgeting can dramatically increase the likelihood a business will attain its goals.

The Small Business Financial and Regulatory Affairs Committee of the Institute of Management Accountants (IMA®) offers the following planning and budgeting tips for small-business success.

Recognize What a Budget is For

A budget is not simply an arbitrary limit on spending – it should reflect both income and expense targets. It should also reinforce the adverse financial consequences of failing to achieve either of those targets. Be sure all budget figures are supported by realistic assumptions.