1. Budget by Department
Split the budget into several categories. For example, begin by budgeting for IT expenses. From there, move on to advertising, labor, and other areas of your business. This will help to keep your spending localized and, at the same time, give employees in charge of each category a little more responsibility.
2. Overestimate Expenses
Always round up in your small business budget. It’s much easier to account for under spending than overspending. This also lessens the blow to your finances when you overspend.
3. Analyze All Business Purchases
Many business owners keep a close eye on their large expenditures, but they don’t pay much attention to the smaller ones. This could be a costly mistake, since those small expenses quickly add up and turn into a big expense. It’s important to pay attention to every bill that comes through to ensure that you’re not spending even a few dollars on frivolous items.