How to Prepare an Effective Budget for 2020

Posted on the 18 December 2019 by Anees @ZulfiqarAAnees

Manage the uncertainty that next year offers us with this simple pocket business finance guide, you can have a great planning of operations.

2020 arrives and with it, 12 months that seem to be complicated in the international political and economic environment. How can you deal with uncertainty from your business?

The planning of the operations of your business is one of the best ways to make it grow. The tool to achieve this is through the elaboration of a budget of sales and expenses. There you will set the goals for the following year.

Prepare an effective budget for 2020

CONTPAQi, a company specialized in business management software, advises the following to prepare an effective budget and end the uncertainty for 2020:

1. Forecast your sales

Analyze the size and behavior of your market to know your opportunities. Take into account the competition to detect if the demand is higher, similar to or lower than the supply. In this way, you can narrow down strategies, develop products or define differentiation actions.

2. Evaluate the financial statement

That way you will know how much money you have. You must have systematized and reliable information through software that allows you to analyze the situation in detail.

3. Analyze your sales

Which product or service was sold the most and where or what did not have movement, who were the best sellers and who should be supported. Then, define your sales objectives and see if you will offer new products or services.

4. Evaluate the expenses throughout the year

It considers departmental, administration and operation to provide and, where appropriate, discard some, to allocate that money to a more strategic aspect.

5. Calculate your profits

So you can set clear goals and predict if there will be a positive return on your investment.

6. Check the projected results vs. Real

If necessary, make adjustments to adapt the budget to the financial situation of the company.

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