Budgeting is an important part of managing your finances and an important part of any successful business. It's critical for getting out of debt, and it also helps you get a grip on what to expect down the line.
One reason to budget is that it can help you get or stay out of debt. Without some means of comparing your income against your spending, it's all too easy to fall into a pattern of overspending - which can then lead to severe financial problems.
Other reasons include:
Ensuring you can retire comfortably or perhaps even earlier
Avoiding getting into bad spending habits
Saving up for an education
Building up your credit score to get favourable terms on loans
Saving up to buy your dream purchase (Examples: home, car, exotic vacation, wedding, or other large purchases)
There may be other good reasons that aren't listed here but the fact of the matter is that making and sticking to a budget is a vital part of achieving your financial goals.
Trust our experts to help guide you through this process.
At Dana Snedden CPA Professional Corporation, our Accountants offer Small Business Accounting Services, Personal and Corporate Tax Services, Bookkeeping, Payroll, and other Accounting Services to clients in Oshawa, Whitby, Clarington, Courtice, Ajax, Pickering, Bowmanville, Newcastle and most of Southern Ontario.