Budgeting For The Upcoming Financial Year

As the financial year comes to a close, it’s crucial for businesses to start preparing the budget for the upcoming year.

This can be a challenging task, especially with the unique needs of each business type. If you don’t have an accounting background, you might find it even more tricky.

 However, with proper planning and strategic thinking, you can set your organisation up for financial success in the new year.

Budgeting for the upcoming financial year involves creating a detailed plan for managing your income, expenses, savings, and investments.

Here’s a step-by-step guide to help you with the process:

• Review the current or previous year’s financial position

Analyse Past Spending: Look at your profits and expenses from the last year. Identify areas where you overspent or underspent.

What does your revenue forecast and expenses look like for the upcoming year – are there funding streams that are ending and are there any new opportunities on the horizon?

Knowing your current position gives you perspective on where you can improve and where you need to take action to ensure sustainability. A solid understanding helps you to set realistic budget goals for the upcoming financial year and ensure your organisation’s overall strategy and objectives align.

• List Fixed Expenses

Property: Building/Office Rent or Building payments.
Utilities: Electricity, water, internet, and other essential services.
Insurance: Property , Staff/Health, Assets

Debt Payments: Loan repayments, credit card bills, etc. 

• Monitor and Adjust Regularly

Monthly Check-ins: Review your budget each month to ensure you’re on track.
Adjust as Needed: If your financial situation changes, update your budget accordingly.