Financial Cents View All Posts

Juanita Farmer 310x277

About Financial Cents

Don’t pay more in taxes than you have to. Take full advantage of all deductions and credits available.¬†Planning is the key to successfully and legally reducing your tax liability. The author,¬†Juanita Farmer, is the Managing Partner of J.D. Farmer & Associates, LLC, a public accounting firm, located in Germantown. Rely... Read more

Discover Other Local Blogs

We have a great number of amazing blog posts contributed by our local bloggers. Discover what is happening in your neighborhood by reading their latest posts.

Budgets_TaxBlog_pic

Three Most Common Budgeting Errors

Budgets_TaxBlog_picWhen it comes to creating a budget, it’s essential to estimate your spending as realistically as possible. Here are three budget-related errors commonly made by small businesses and some tips for avoiding them.

  1. Not Setting Goals. It’s almost impossible to set spending priorities without clear goals for the coming year. It’s important to identify, in detail, your business and financial goals and what you want or need to achieve in your business.
  2. Underestimating Costs. Every business has ancillary or incidental costs that don’t always make it into the budget–for whatever reason. A good example of this is buying a new piece of equipment or software. While you probably accounted for the cost of the equipment in your budget, you might not have remembered to budget time and money needed to train staff or for equipment maintenance.
  3. Failing to Adjust Your Budget. Don’t be afraid to update your forecasted expenditures whenever new circumstances affect your business. Several times a year you should set aside time to compare budget estimates against the amount you actually spent, and then adjust your budget accordingly.
Juanita Farmer, CPA

About Juanita Farmer, CPA

Juanita Farmer. CPA is the Managing Partner of J.D. Farmer & Associates, LLC, a Public accounting firm, located in Germantown, Maryland. Ms Farmer has been practicing in the field of accounting and tax for over 27 years.

Comments

One Response to “Three Most Common Budgeting Errors”

  1. Merlyn Reineke
    On February 25, 2016 at 8:38 am Merlyn Reineke responded with... #

    Very helpful information!




Engage us on Facebook

Follow us on Twitter