Essential Budget Data Gathering for Small Businesses
Traeton, a budgeting expert, provides insight into key data inputs needed to build a successful budget. These inputs include headcount, employee benefits, rent expenses, and inventory needs. For most businesses, these are the main areas to focus on when building a budget.
When it comes to building budgets, gathering the right inputs and data is crucial. Traeton, a financial expert, explains some of the key data he gathers from companies to build their budgets.
One of the main drivers Traeton focuses on is the head count. For companies that are employee-heavy, knowing the number of employees and potential benefits rollouts is essential. People are the engine that keeps everything running, and employee expenses are usually one of the highest expenses for most small businesses.
Another important driver is rent expense. Knowing how much the company can afford for office space is critical. Companies need to find office space that can accommodate their needs without breaking the bank.
Lastly, for businesses that are inventory-based, Traeton focuses on knowing how much product they need to sell and how they're going to contract with their vendors. By understanding these drivers, Traeton can create a comprehensive budget that considers all the important factors.
Building a budget can be a daunting task for many small businesses. However, by focusing on the key drivers, companies can create a more accurate and reliable budget. Traeton stresses that companies need to keep a close eye on these drivers throughout the year to ensure that they stay on track.
It's also important to note that budgets aren't set in stone. As the market and the company's operations change, the budget may need to be adjusted. Traeton recommends that companies revisit their budget at least once a quarter to ensure that it's still accurate and relevant.
In conclusion, building a budget requires gathering the right inputs and data. For companies, understanding the key drivers is essential. By focusing on drivers such as headcount, rent expense, and inventory, Traeton can create a comprehensive budget that considers all the important factors. Companies should also revisit their budget regularly to ensure that it's still accurate and relevant. With the right inputs and ongoing monitoring, companies can build a budget that helps them achieve their goals and stay on track financially.