COC ACCOUNTING CAN HELP
How To Create A Small Business Budget
Small business budgets are empowering. They give you the knowledge and insight to eliminate wasteful spending and get to profitability faster.
A well-planned small business budget will:
01
Show you how many sales you need to cover costs
02
Figure out how much money you can reinvest in the business
03
Find out when you can afford to hire help
Small Business Budgets Are Easier To Make Than You Think
Budgeting has a lot of baggage. It sounds boring, complicated and even daunting. But there’s no need to put it off. There are just three broad sets of figures to get your head around and they’re really simple.
Setting a budget is part of becoming financially literate, and it’s a vital skill. The better you can 'read' the figures relating to your business, the more successful you’ll be. And you don't need to become an accountant to do it.
This report tells you at a glance whether you're making money or losing it. To do that, you’ll subtract your expenses from your income. To help you get started, contact COC.
This tells you what your business is worth. It's the difference between what you own and what you owe. On the plus side of the balance sheet you’ll find:
-
the value of the assets owned by your business, such as work tools or real estate
-
cash you have in the bank
-
invoices that have been sent to clients but have not yet been paid
All of these are business assets. On the other side of the balance sheet are your liabilities, which include:
-
expenses that have been incurred but not yet paid, such as bills from suppliers
-
taxes that are due to be paid in the near future
-
loans or other business debts that you have
The balance sheet shows your assets minus your liabilities. Get started and contact our COC experts.
A trial balance is another very useful accounting concept. It shows all your debits, credits, assets and liabilities on a single document. In other words, it represents the entire balance of your business accounts.
3. Trial Balance
A trial balance is another very useful accounting concept. It shows all your debits, credits, assets and liabilities on a single document. In other words, it represents the entire balance of your business accounts.
2. Balance Sheet
This tells you what your business is worth. It's the difference between what you own and what you owe. On the plus side of the balance sheet you’ll find:
-
The value of the assets owned by your business, such as work tools or real estate
-
Cash you have in the bank
-
Invoices that have been sent to clients but have not yet been paid
All of these are business assets. On the other side of the balance sheet are your liabilities, which include:
-
Expenses that have been incurred but not yet paid, such as bills from suppliers
-
Taxes that are due to be paid in the near future
-
Loans or other business debts that you have
The balance sheet shows your assets minus your liabilities. Get started and contact our COC experts.
1. Profit & Loss Report
This report tells you at a glance whether you're making money or losing it. To do that, you’ll subtract your expenses from your income. To help you get started, contact COC.
