As any accountant will attest, to maximize your chances of small business success, you need to make—and stick to—a budget. However, many business owners try and fail, in part because they see budgeting as a way to manage the outlay of every dollar. Instead, you should view it as a guide to understanding where your money goes. To help you do this, below are some tips for successful budgeting.

3 Budgeting Suggestions for Small Businesses

1. Expect the Unexpected

Your first budget shouldn't be too restrictive or tight. Plan on unexpected expenses and build them into your budget. You can tighten up gradually as you learn more about your cash flow and better understand the realities of your business outlays. You can add a line item for contingencies or simply round up each component to prepare for unplanned expenses. Experiment to decide which method works best for your organization.

2. Be Detailed 

The more headings you have under your budget, the easier you can see where you are spending money. For instance, instead of having a line item titled "Employee Benefits," break this down even further to account for health coverage, life insurance, and vacation pay. However, don't make the process so detailed and complex that accounting for expenditures becomes a burden. A budget must be usable and flexible to be successful.

3. Hire a Good Accountant

An experienced accountant can be an invaluable asset when it comes to developing a useful budget. They can provide invaluable guidance regarding cash management, tax planning, financial projections, and payroll, to help you create a budget that's both effective and sustainable.

For help designing and implementing a budget for your business, contact Erie & Associates, an experienced firm of accountants in Texarkana, TX. They have more than 30 years of industry experience helping valued clients in and around Bowie County with tax preparation, bookkeeping, and payroll services. Visit their website to submit an information request or call (903) 792-6651 to schedule a consultation with one of their accountants.