Small Business Budgeting | Reasons and Examples

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Күн бұрын

Small business budgeting is key to getting the most out of your business. This videos covers the following budgeting basics for small business:
- Why you should budget
- Small business budgeting tools (teaser - start with a spreadsheet!)
- How to create a small business budget
- Examples and screenshots as we cover these topics
If you'd like to see this video in blog format with the budget example screenshots, you can view the associated blog here: ledgergurus.com/how-to-make-a...
If you need help with your budgeting and other accounting needs, reach out to LedgerGurus here: ledgergurus.com/contact-us/
Here are some related resources for small business budgeting:
"How to Build a Budget for Your Ecommerce Business" - ledgergurus.com/ecommerce-bud...
"Ecommerce Marketing Budget Calculator" - ledgergurus.com/resources/dow...
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• Small Business Budgeti...

Пікірлер: 6

@LedgerGurus 3 жыл бұрын

For help with your budgeting and/or accounting, reach out to the gurus: ledgergurus.com/contact-us/

@yorqinfikr450 3 жыл бұрын

Could you please advise how I can break up my investment? if you make a video of how many percent should go to inventory, marketing and etc., it could be very helpful. Thank you in advance!

@LedgerGurus 3 жыл бұрын

That is a good question. There are some industry best practices for how much you should spend. We'll look into content on that topic for the future. As a general best practice, your COGS should not be more than 60%. Some businesses can go higher, but try and stay at or below 60%. Inventory is really and equation of how much cash you have versus demand for sales. More inventory can equal more sales, but it can also equal less cash and worse if you don't have good sales. Marketing can vary, but 7% is a good target. This number will depend on the stage and type of business you have.

@gingertomm__ 3 жыл бұрын

what happens if your COGS ratio is not consistent?

@LedgerGurus 3 жыл бұрын

It depends on how variable it is. If the ratio differs slightly, that is normal. If you see big swings month to month (say 50% COGS one month, 80% the next), it is likely a reflection that you are not measuring COGS accurately or you have widely differing product costs. Most likely it is a measurement issue. The most common mistake is to apply inventory purchases to COGS instead of applying it to the inventory balance sheet account.