Budgeting is an essential tool as its preparation enables the proper control and planning of any organization’s or businesses’ finances (Lau & Tan, 2005). Small businesses make use of budgeting such that they can obtain effective and efficient money-making hints and asset base expansion. Additionally, budgeting is valuable as it ensures that the businesses use their limited human resources and finances they have in their kitty and thus, making the businesses exploit the business opportunities they come across. Budgeting that is prepared out of insight helps in the incorporation of great judgment in the business reviews and in the proper analysis of the data and the trends pertinent to the opportunity leading to its success (Huck & McEwen, 1991). The information provided in the budget helps the business persons to make appropriate decisions. Also, it helps to know the amount of financial requirement needed to be invested and the employees needed for the business (Longenecker et al., 2013). Budgeting is either based on the short term or long-term focus of the business.
Qn. What resources are available to small business owners in the area of financial planning?
Small business owners require financial planning resources. The resources include knowing what goals they require in person and for the business. There are lines to be drawn for the two goals between business and family (Muske et al., 2009). Secondly, the small business owners need to know on the value of investing in stocks and bonds in case their first investment plans do not happen. The other most vital resource is knowing one’s financial alternatives and integration of the financial perspectives (Vom Brocke, Recker, & Mendling, 2010). The alternatives include loans from friends and family, federal loans or even their credit cards. Nonetheless, the business owners need to have knowledge on the tax requirements and the issue on insurance for both the business and themselves.
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Qn. In addition, research organizations in your area that would be helpful to business owners and include links to these organizations.
The organizations that would help the business owners are basically the funding organizations to offer financial services. The link is as follows for the organizations:
https://www.smartbizloans.com/
https://ofn.org/
Reference
Huck, J. F., & McEwen, T. (1991). Competencies needed for small business success: perceptions. Journal of Small Business Management, 29(4), 90.
Lau, C. M., & Tan, S. L. (2005). The importance of procedural fairness in budgeting. Advances in Accounting, 21, 333-356.
Longenecker, J., Petty, J., Palich, L., & Hoy, F. (2013). Small business management. Nelson Education.
Muske, G., Fitzgerald, M. A., Haynes, G., Black, M., Chin, L., MacClure, R., & Mashburn, A. (2009). The intermingling of family and business financial resources: Understanding the copreneurial couple. Journal of Financial Counseling & Planning, 20(2).
Vom Brocke, J., Recker, J., & Mendling, J. (2010). Value-oriented process modeling: integrating financial perspectives into business process re-design. Business Process Management Journal, 16(2), 333-356.
