What are your financial objectives?
Knowing your financial objectives is important when creating your budget. Be as realistic as possible, if you have been in business for some time, look at your historical data. What did you make last year, last two years or even last five years? Looking at your historical data will give your insights into where you want to go.
For example, historical data can tell your what your revenue growth trends are year over year. What your profit margin trends are or which expenses are directly tied to revenue growth and how you can look for ways to decrease some expenses to maximize your profit.
DO NOT set unrealistic objectives, this will only make your frustrated and create unnecessary stress both financially and emotionally.
Moment of Truth: How much time do you spend reviewing your business finances?