How can I do simple budgeting in QuickBooks? Is that what you are looking for? My Papa, Lee Davis, the owner of Lee Davis and Company would love to help you.

Lee Davis is an expert in QuickBooks and small business management. He does the QuickBooks and small business management for many local New Hampshire businesses.

If you need help running your business, Lee would love to help you. There is no need to do it all, and there is no need to be a wiz at business to own your own business when you hire Lee Davis and Company to help you.

Let’s start with your QuickBooks question: How can I do simple budgeting in QuickBooks?

Everyone needs simple budgeting.

The little things matter. Money you spend on coffee matters. Monthly subscriptions matter. Lowering interest rates matter. Every little penny matters.

It’s hard to remember that when you think about the purchasing power of a penny, but pennies add up, and that’s why you need a budget.

Don’t be fooled by low-priced items.

Businesses get you with low-priced items. You might think to yourself, “Oh that doesn’t cost very much; I can afford that.”

But, when it comes down to it, those low-cost items are breaking the bank. That’s why you need a budget. That’s why this post on simple budgeting with QuickBooks will help you succeed in business.

For more information on how to rock your expenses, check out our post on tracking business expenses with QuickBooks.

So, Papa, How can I do simple budgeting in QuickBooks?

Many businesses look at their financial reports to see where they have been, rather than to see where they are going. Wouldn’t you like to know where you are going? That’s using QuickBooks to its fullest potential, and that’s what I would like to help you with.

What does the budget do for me?

The budget in QuickBooks shows you both, where you have been and what might happen to your business. 

Am I close?

 The budget tool answers the question of how close am I to reaching  my goals. This is based on current information and trends that are occurring or have occurred in your business historically. 

Cash Flow Analysis

The budget allows you to drop the information into a spreadsheet and create a cash flow for your banker or the board of directors.

Do I need more cash?

How is your business managing your cash?

  Budgets is a great tool to look at the cash needs of your business. 

If you are just starting out and you are looking for a small business loan, the SBA will require both a budget and a cash flow analysis. 

Check out my post on getting a small business loan.

How do I get help?

 While you may not have experience in preparing either a budget or a cash flow analysis your QuickBooks Pro-Advisor and your accountant can be very helpful in assisting you with these important financial tools. 

After you have gone through the process of using these tools, use them to manage and grow your business.

What are my takeaways from this post?

  • Budgeting in QuickBooks allows me to come up with a cash flow analysis that will help me track the pennies.
  • It will also be beneficial for me to know what is coming up according to trends; that’ the power of budgets in QuickBooks. Because it is a computer based program, it can crunch the numbers and make projections.

Questions on simple budgeting in QuickBooks:

What are some mistakes people make when using simple budgeting in QuickBooks?

My clients don’t have a budget.

The first mistake is that clients don’t prepare a budget. Businesses need to review annually what they are spending. After they review what they are spending, they can make decisions about how they need to move forward in the upcoming year.

Instead of reacting to what happens in their business, they can make informed decisions based on the numbers

My clients don’t keep good records.

The second mistake is that my clients often don’t keep good records on their expenses so that they can review their expenses and see what they are spending money on.

For example, if my clients know what they are spending on bills, they might be able to negotiate better contracts or fees.

What are some small business expenses that you think businesses need to cut out or decrease?

The biggest expense that any business has is their human resources. You should review what you are paying in wages and workers compensation and make sure you are getting a maximum return on the people you are hiring.

Outside Contracts

You should also look at outside contracts to make sure those contracts are producing a return on investment.

Bank Fees

Look at your bank fees. If you feel like you are spending a significant amount on your bank fees, consider changing your bank. I work with Bar Harbor Bank and Trust that doesn’t charge a monthly service charge. If you don’t have a bank that offers free checking, find one.

Loan Interest

Look at the interest you are paying on loans. If you are paying high interest rates, call your broker to find out what you can do to lower your costs. Having a good banking partner can help you with expenses.

Credit Card Expenses

Review what you are paying in credit card expenses. Make sure that either you or your employees are not overusing your credit cards.

How have you seen businesses us simple budgeting in QuickBooks in a powerful way?

I have seen my clients be able to use simple budgeting in QuickBooks to make important business decisions. For example, a company needed to purchase a piece of equipment instead of rent a piece of equipment. That only become apparent when we reviewed their budget in QuickBooks.

What’s the power of QuickBooks budgets?

When you create the new budget, you can bring over the data from the previous year and put it in by month, and then you can edit it. Therefore it’s not just a computer that is crunching your numbers, but you are able to influence the budget.

It also helps you to think about what ifs:

What if I didn’t have this expense?

What if I had higher revenues?

Since I have this revenue, what should I do about expenses?

How can Lee Davis and Company help you with simple budgeting in QuickBooks?

  1. We could train you to use simple budgeting in QuickBooks.
  2. If you need someone to set up your QuickBooks to use this awesome feature, we could do that.
  3. If you would like someone to help you get your books in order so that you could use simple budgeting, we could help you do that.
  4. We would also love to help you get control of your expenses and stick to your budget by managing your business.
Lee Davis standing outside in the sunshine
Lee Davis and Company’s President, Lee Davis

What can you expect from Lee Davis and Company? 

Lee Davis is the president of Lee Davis and Company. He prides himself in helping his clients make their dreams of running a successful business a reality. He has the tools and advice that will help you, the client, get to the next level. 

What services can you find at Lee Davis and Company? 

  1. Bookkeeping Services
  2. Small Business Advising 
  3. Quickbooks Training
  4. Management Services

We are looking for a bookkeeper. 

Hello, if you are reading this post, perhaps you might be a bookkeeper or know someone who is a bookkeeper. 

At Lee Davis and Company, we are looking to hire a bookkeeper to service the ever-growing number of clients that we have on our roster. 

If you would like to throw your hat into the ring, we would love to meet you. Contact us through our website or email [email protected]

Read more posts by Lee Davis 

  1. Trouble Shooting for QuickBooks Set up
  2. Business Expense Tracking
  3. Navigating the Health Insurance Maze
  4. Set up your QuickBooks with Detailed Start
  5. Getting your SBA Loan Approved
  6. Steps Before Setting up QuickBooks