What should I Include in My 2024 Budget
Preparing a financial budget for your business in 2024 can offer several benefits, including helping you plan for the future, make informed decisions, and maintain financial stability.
Here are some of the key benefits of creating a budget, as well as what to include in it:
Sales Projections:
Estimate your sales and other sources of income for the year. This could be broken down by product or service, customer segments, or sales channels.
Operating Expenses:
Include any significant investments in assets, equipment, or technology that you plan to make during the year.
Capital Expenditures:
AI-driven predictive analytics can help businesses forecast demand, identify trends, and make data-driven decisions for inventory management, sales projections, and marketing strategies.
Debt and Financing:
If you have loans, leases, HP's or credit lines, outline the payments, interest, and terms associated with your debt.
Contingency Fund:
Set aside some funds for unexpected expenses or emergencies. They always happen so best have something put aside so you are not left high and dry.
Sales and Marketing Plan:
Outline your strategies and budgets for marketing and sales activities to support your revenue projections.
Personnel Costs:
Wage costs are a large part of many organisations overall cost structure. Include salaries, benefits, and payroll taxes for your employees.
Key Performance Indicators (KPIs):
Identify specific metrics and KPIs that you'll monitor throughout the year to gauge your business's financial health.
Review and Adjustments:
Regularly review your budget and be prepared to adjust if your actual results differ from your projections.
To Summarise
Your budget should provide a monthly or quarterly projection of your profits and losses in the format of a Profit and Loss Statement.
You can also create a year-end balance sheet to project your business’s financial position at the end of 2024.
Remember that your budget is a dynamic document. It’s not set in stone and should be adjusted as circumstances change. The budgeting process should be collaborative and involve key stakeholders in your business to ensure that it accurately reflects your goals and plans for 2024.
Author..
John Carolan ACMA, CEO of Solve Outsource
Contact Email: john@solve.ie
