How Can Budgeting Services and Financial Strategy Benefit You?
- Jenny Marie
- Mar 24
- 3 min read
I've always explained that we do not operate like the average bookkeeper. Due to my 15+ years in Business Consulting, I cannot just allow my team to track income and expenses and leave it at that.
I know all too well, how much budgeting and financial strategy contribute to achieving an entrepreneur's goals. This is why we offer our Fractional CFO Services which include budgeting and financial strategy.
Many business owners assume that bookkeeping and budgeting are one and the same. However, there are significant differences between what we do with budgeting and what a typical bookkeeper provides. Our approach goes beyond basic bookkeeping, ensuring that your financial scene and forecasting is accurate, up to date, and fully accounted for.
The Limitations of Traditional Bookkeeping Reports
Many business owners glance at their Profit & Loss (P&L) statement and assume they have a complete understanding of their financial situation. But if your QuickBooks Online® isn’t consistently updated, those reports won’t be accurate. Even when they are, relying solely on a P&L can leave out critical financial trends especially if an entrepreneur has many expenses in one category and each isn't broken down further to see the trend or the missing payment or the overspending.
...a P&L can leave out critical financial trends especially if an entrepreneur has many expenses in one category and each isn't broken down further to see the trend or the missing payment or the overspending.
A true budget doesn’t just look at income and expenses—it also considers the balance sheet. For instance, while active credit card purchases may appear on your P&L report as expenses, what about the payments made toward long-term debt? Those cc or loan payments which aren't actively putting expenses on the P&L still have a payment which should be included in your budget each month! If you're paying off a loan or an older credit card balance, those payments impact your cash flow and overall budget, even though they don’t show up on the P&L in real-time. Without incorporating these factors, your financial strategy will always be incomplete.
A budget is a financial plan that outlines expected income and expenses over a specific period. It helps individuals or businesses forecast what is needed as a financial target and ensure financial goals are met. A well-structured budget accounts for both recurring and one-time expenses, future obligations, and available funds to maintain financial stability and growth.
Why We Manage Personal Accounts for Business Owners
Another key distinction in our approach is that we encourage clients to allow us to manage their personal accounts as well. Small business owners frequently mix personal and business expenses, which leads to lost deductions and inaccurate financial tracking. When business expenses get charged to personal accounts, those expenses may never be deducted properly, costing you money at tax time.
Beyond tax benefits, knowing how much you're spending personally is crucial. As a business owner, your personal expenses are covered by the income you pay yourself from the business. This is unusually in the form of payroll and distributions. If you aren't making enough to pay yourself consistently and an adequately, it makes sense to have us monitor your personal expenses to see where we can cut costs and catch deductions when you mix by accident.
If you aren't making enough to pay yourself consistently and an adequately, it makes sense to have us monitor your personal expenses to see where we can cut costs and catch deductions when you mix by accident.
A Comprehensive Approach to Financial Success
Unlike traditional bookkeeping, which primarily focuses on categorizing, reconciling and generating reports, our budgeting approach ensures that:
Your financial data is always up to date, providing real-time insights.
Your budget accounts for both P&L expenses and balance sheet obligations.
Personal and business finances are properly monitored, reducing lost deductions and financial inefficiencies.
By taking this more comprehensive approach, we empower business owners to make better decisions, plan effectively, and achieve long-term financial success.
Let us know if this blog helped. If you would like a Free Consult, CONTACT US!