Business on a Budget: Where to Spend and Where to Save in Ontario
Businesses thrive on good budgeting, and it’s important to know which of your expenses are essential and which ones you may be able to cut back on (or do without completely!).
In essence, a budget is a financial plan of where you spend your money each month. This plan helps you visualize exactly where every dollar is going. Without a budget to guide your financial decisions, you risk doing damage to your bottom line that could have been avoided.
From solopreneurs to medium-sized enterprises, every business is going to have some expenses for which to account. Even work-from-home entrepreneurs who don’t have the typical business overhead can benefit from good budgeting.
When crafting a budget, your first priority should be to decide which expenses you really need and which ones you don’t. Of those you decide you need, it’s important to know how much you should be spending on those areas. Many businesses may be investing too much of their revenue into areas that don’t justify the cost and not enough in key areas that could help you grow.
Here are some practical tips on where businesses should be spending the most and where they can save to improve their profitability.Read more.