Budgetary control: best practices

Any entrepreneur knows that running a business requires a lot of determination and responsibility. However, There are also other factors at play, such as budgetary control. Even the most motivated entrepreneurs could not have succeeded if they did not know how to manage their assets.

The problem is that companies of any size are generally subject to significant budget fluctuations, sometimes predictable and sometimes not. This requires a clear budget plan that is flexible enough to withstand critical situations and knowledge of best practices in this area.

Avoiding risk, gaining security: objectives achieved with budgetary control

The most effective budgetary control is systematic, objective and... also automatic. Minimise human interaction, e.g. with regard to the cost notes; integrating and standardising all invoices for expenses and receipts and ensuring alignment of the finance department with other business areas are best practices that never fail.

If you are aiming for a contingency-proof budgetary control, you would be well advised to keep four principles in mind:

1. Not to fall short. Expecting a higher volume of expenditure leaves as little as possible to chance. Especially if the business is in its infancy, being overly optimistic about income and expenses can be dangerous. Moreover, in the case of a service business, it is key to realise that no two projects are ever the same. That means that some may be more demanding from a financial aspect, which means that you should always expect less income and more expenses to keep you safe.
2. Accounting impeccable. Recording expenses, interpreting and analysing them is the way to always be aware of the financial state of the business. In addition, it is key to classify expenses correctly, as this gives a better understanding of where costs can be reduced, if necessary.
3. Planning cycle. It is always a good idea to follow a pattern when it comes to objectively assessing the annual budget and performance. This makes it possible to superimpose results per year, compare them and find ideas for improvement wherever possible. By creating one's own pattern that reflects the peculiarities of one's niche or industry, the task becomes easier and more effective.
4. Regularly address the budget. After all, that is what budget control is all about. Ideally, this should be done on a monthly basis. The reason is that the business may always face new challenges, which means that the budget will need to be adjusted or modified.

As we said, One of the key points for good budgetary control is planning. However, it is not always possible to tie up all the loose ends. The company cards The use of indiscriminate use or expense notes that require the payment of ticket amounts that exceed expectations are common problems. To solve these problems and avoid their consequences, Corporate, a practical and user-friendly solution, which allows access to a The new model for the integrated management of business expenses also promotes savings by facilitating the recovery of VAT.