As 2019 comes to an end, 2020 planning is critical for your business to be successful in the upcoming year. Budget preparation for the next year should be occurring now if your business follows the calendar year. Getting an early start on budgeting is also beneficial, as it always seems to take longer than anticipated to complete.
In a successful budget, you need to determine how much and where your revenue will be coming from for the next year; along with your anticipated expenses. Personnel costs are one of the largest expenses businesses have. Questions you need to think about regarding personnel costs for the next year include: How much of a raise are you going to give yourself or your employees? Are you going to expand your workforce? What type of employee benefits are you going to offer?
Other expense items you need to think about include rent, utilities, office supplies, and insurance. Maybe you are planning on moving to a new office building, or want to make needed repairs in the upcoming year. Make sure you think about these costs as you create your 2020 budget.
Marketing & advertising costs are always hard to determine when you are a small business, however it is critical that you put aside some money for advertising, even if you are just spending $20 a month on Facebook Ads. You should also take into account the software costs, continuing education, and professional fees you plan on spending in the next year.
Remember, budgets are not perfect, but rather serve as a guide for you to follow. Unexpected items will come up during the year and you may have to shift money from one place to another. Whatever the case may be, creating some extra cushion in your budget is always ideal for unexpected items.
If you need help with your 2020 budget, give CFO 4 Your Biz a call. We help clients plan for the future, and help determine what will make them profitable in the next year.