Budgeting makes you a better entrepreneur or intrapreneur
Because budgets are focused on real dollars and cents in the business, they will make you a better entrepreneur or intrapreneur.
Budgets teach you about money
The process of creating a budget will teach you more about money. As you use more budgeting software, you’ll gain both tech savviness and a digital understanding of money.
Budgets give you a financial visual of your company
It’s easy to get caught up in the day to day of running your business or your project – having a budget forces you to take a step back because it will encompass all the money flows in the organization.
Depending on your organization’s size the numbers may not be down to precise dollars, but having an overview will show you where the engine of your company – where you invest your resources – is driving towards.
How to budget with different budget categories and expenses
As you go into creating your budget, consider which type of budget is right for you.
Zero based budgeting
Zero based budgeting looks at the business from the lens of every expense having to prove itself.
When you use zero based budgeting, you get a clean slate every time. This means having a list of all your expense categories, then filling it in line-by-line with necessary items and their costs. Each item is up for debate and must show its value or it risks being taken off the budget.
How to budget with zero based budgeting
These kinds of budgets are best for very small, lean teams – or teams looking to cut costs and prove the value of each expense.
If you’re just figuring out how to budget, zero based budgeting may be a solid option for you.
You start by looking at every expense category in the business.