Businesses are designed to make money. When you are creating a small business budget, the first thing you need to know is how much money your business is earning each month. Finance software solutions can make it easier for you to keep track of these figures.
In addition to determining the amount of money are making each month, finance software solutions can help you keep track of where the money you are making is coming from. A profit and loss report helps you look at your sales figures at a glance. This is a great place to start when creating a budget. From there, you can identify other income sources your business has throughout the month.
The number of income sources you have will vary based on your business model. For example, if you work as a voiceover artist, income might come from direct projects you are hired for, an online course you have created to teach others how to edit audio, and consulting fees for classes you have with aspiring voiceover actors.
If you have a retail business, your primary source of income may be from the sales at your brick-and-mortar store or your sales online. Regardless of the number of income sources you have, you want to make sure that they are all accounted for. This is the only way that you are going to get a clear picture of your monthly income. You can then use this information to determine how you will grow your business moving forward.
