During the open forum discussion on creating a simple budget for your business led by Siabh from Raven Account Services at the Lower Plenty Strategic Alliance Network Meeting on March 8th, attendees raised several important questions that added value to the learning experience.
One of the most pressing questions was creating a budget that accurately reflects the business’s financial situation. Siabh explained that starting with a clear understanding of the business’s revenue streams and expenses is important. This means looking closely at all the sources of income, such as sales, investments, and loans, as well as all the expenses, such as wages, rent, and utilities. By creating a detailed list of revenue and expenses, businesses can clearly understand their financial situation and use this information to create a realistic budget.
Another question raised during the open forum discussion was how to prioritise spending with limited resources. Siabh emphasised the importance of distinguishing between essential and non-essential expenses. Essential expenses are necessary to keep the business running, such as rent, utilities, and salaries. Non-essential expenses, however, are not strictly necessary but may still be important for the business’s growth and success, such as marketing and advertising. By prioritising essential expenses and cutting back on non-essential ones, businesses can ensure that they are using their limited resources most effectively.
Attendees also asked about how to handle unexpected expenses or changes in revenue. Siabh advised that it’s important to create a contingency plan in the budget to account for unforeseen expenses or changes in income. This means setting aside a portion of the budget for emergencies or unexpected events, such as equipment breakdowns or sudden drops in revenue. By preparing for the unexpected, businesses can ensure that they are not caught off guard and can weather any financial storms that come their way.
The open forum discussion also emphasised the importance of monitoring and adjusting the budget as the business grows and evolves. Siabh stressed that creating a budget is not a one-time event but an ongoing process that requires regular monitoring and adjustment. As the business grows and changes, its financial needs and priorities may shift. By regularly reviewing the budget and adjusting it as needed, businesses can ensure that they stay on track and make the most of their financial resources.
The value of Siabh being able to answer these and other questions raised during the open forum discussion cannot be overstated. Siabh’s expertise and experience in accounting and financial management gave attendees invaluable insights and advice on creating a simple budget that accurately reflects their business’s financial situation and priorities. The open forum format allowed attendees to learn from each other and share their experiences and best practices, creating a rich and dynamic learning environment.
Overall, the open forum discussion on creating a simple budget for your business was a great success. It gave attendees practical tools and strategies for managing their finances and maximising their resources. By addressing pressing questions and concerns, Siabh and the attendees created a collaborative learning experience that will benefit everyone participating.
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