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I recently did some random surveys, where I ask people questions about budgeting.  Budgeting is a necessary evil but no one wants to do it and I couldn’t figure out why?  Because it’s a very simple process.  I even share some simple steps in my post titled How To Create a Budget in 3 Easy Steps.  So I said to myself, “when in doubt – ask.”  So I asked people everywhere I come in contact with, friends and family, clients and social media connections, these three questions:

• What frustrates you about budgeting?
• What challenges do you face with budgeting?
• What would make budgeting easier?

I received a lot of different responses.  One response was even “trying to get my husband on board.”  I had to laughed at that one.  Wouldn’t you know sometimes I have that same problem.  So I asked around and the most common responses I got were: Not having enough money; Having to create the budget; and Sticking to the budget.

Well let me tell you that last one resonates with me in a big way.  When I graduated college and started getting a real paycheck I moved out of my parents house within six months.  And I haven’t been back yet! One of things I realized very quickly was I needed to make sure all my bills for paid before I could spend money on what I wanted to.  I already knew I had a shopping problem.  Big secret right? So I created a budget for each paycheck.  I would budget six to eight months at a time so I would know when I would have the money to go holiday shopping or shopping for myself, on trips and even which months I could make lump sum payments to get out of debt.  This little schedule was great .  In fact, I still use it to this day.

As time went on, I could never figure out why I didn’t have enough money.  Then I would get a new job with a higher salary but the same thing would happen.  It was years before I realized that I was good at creating a budget but I sucked at following the budget.

So to help you avoid or to stop having the same problems I had, here are solutions to the top three responses.

1. Not having enough money. This is a terrible excuse.  You don’t have enough money because you don’t have a budget to begin with.  You need to create a budget so that you can know where you need to spend money, including saving or paying yourself first.  Whether you are getting paid $5,000 a week or $5,000 a month, you need to ensure that all your costs are covered.  And if all your costs are not covered, that’s when you will know it’s time to ask for that raise or move on to other things.  But my guess, you will be just fine when you see all of the unnecessary things you spend your hard earned dollars on.  It’s just going to take  a little self control.
2. Having to create the budget.  Not sure why people have such a hard time with this one.  If you do, then you are definitely over thinking things.  Here is the link again for How To Create a Budget in 3 Easy Steps.  Doesn’t matter if you’re doing a budget for a business or for your household, the same rules apply.  The only difference is for a household, you may not need to budget a full year.  Six months will do just fine.
3. Sticking to the budget.  Now this I get.  It’s the shiny toy syndrome.  Every time you see something shiny and new you just have to have it, right? WRONG? You don’t need to be a walking model with all the hottest clothing trends.  And you don’t need to buy a new cell phone every time they come out with a new version.  You need to develop a system for tracking your costs.  A system you can stick to.  And try and make it fun.  Enlist a friend, turn it into a game or reward yourself.  When you have a prize waiting for you, you are more inclined to follow through.

Now it’s your turn. What frustrates you about budgeting? What challenges do you face with budgeting? What would make budgeting easier?

Opening and running a business is a challenging endeavor, and this is especially true for the businesswomen of the world. In America, women only own 30 percent of all businesses, and sadly, first year capital funding for women running companies is 80 percent lower than our male counterparts. These overwhelming disparities make it imperative for female business owners to get ahead in as many ways as possible, but there are still many positive things going on for women in business, and smart business decision-making will continue to increase those positives.  Good networking, business education, and smart money moves like payroll outsourcing can mean a huge step that direction.

Employee Productivity

There's no doubt that doing payroll is a hassle. For business owners who choose to handle their payroll in house, they take on this hassle themselves. This is far from ideal because this hassle reduces workforce productivity. Just imagine how long doing all of the payroll activities (ie. paychecks, taxes) takes any employee; now imagine what they could be doing instead. It's important to factor in the big picture when running a business, and in such, business owners need to recognize that the cost of outsourcing payroll may be far less than the cost of the tasks that won't get done because time is being unwisely spent.

Money and Savings

Outsourcing a company's payroll is a quick and simple way to save money. Larger corporations likely have the funding and necessity of having large payroll departments, but smaller businesses don't have, nor do they need, the luxury of doing this. The labor costs related to having an employee handle payroll can become overwhelming. In fact, the money saved by outsourcing payroll can even help a company grow. Every dollar saved is a dollar that can be reinvested into the company, and there's no doubt that this will help a business grow exponentially in the long run.

Accountability

Any business owner who does her own payroll has felt the fear of wondering what will happen if something is incorrect on their payroll or taxes. Fortunately, when payroll is outsourced, this accountability lies with the payroll company. It is their responsibility to handle and correct any mistake that they make. If for some reason they choose not to, they can be held liable in civil court and made to pay damages. This peace of mind can go a long way.

Compliance

Ensuring accurate compliance with payroll and tax laws isn't the only legal worry that a person having their payroll done in house will have to consider. The simple fact is that if a company has their own employees handle payroll, they will need to provide security measures. No matter how much a person trusts their employees, they can't chance that certain abuses may be occurring behind their backs.

Payroll companies make a living by providing payroll services, so they have security measures in place that are designed to keep shady practices from occurring. If something like this does occur however, as mentioned earlier, the payroll company is fully accountable and will handle the issue accordingly. This takes a huge hassle off of the hands of the business owners and frees her up to manage the big picture and tend to the myriad other things that need her attention.


If you can identify one change that is almost certain to positively affect your business's growth, there's no reason to avoid making that change. Outsourcing payroll may seem like an added expense, but in reality, it will end up saving money and lessening the items on the critical to-do list. There are enough glass ceilings over female business owners as it is, there's no need to create an extra one.

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Having operated her small business for the past seven years, Akilah Richards knows first-hand the benefits of outsourcing.  She practices what she preaches by hiring outside help for various facets of her business, and will certainly add payroll experts to her list of priorities when she starts hiring employees.  Learn more about the benefits of outsourcing payroll from the payroll outsourcing specialists at NEBS PAYweb.ca.  

Photo Credit: http://www.flickr.com/photos/firechickenta99/3479600161/

There are a host of activities involved in running a small business. And being every woman leaves you with a full schedule with lots of attention to detail and decision-making. It's no surprise that part of being a business owner involves being in control over business finances. Ensuring that there is ample cash and knowing how to manage money is a skill that you will need to develop. Let's look at three components that will help you prepare a more accurate business budget: budgeting, planning, and forecasting.

Budgeting

Business budgeting involves the management of your company's financial resources. In order for the process to be done well budget managers should carefully monitor the sources and uses of cash in the business. This is important because it allows you to put your finger on the pulse of financial activity. By understanding what is normal in the course of business such as seasonal revenues or abnormal cash injections you can better project your financial position at a given point in time by becoming familiar with the ebbs and flows of cash.

Planning

In planning the allocation of resources there are various tools that can help you in budgeting. Some resources include accounting software that have budgeting features included in them. Some spreadsheet programs also have budgets that are pre-formatted for you. Alternatively, if you are tech savvy then you might also choose to design a business budget from scratch. Whatever method you choose remember that your forecasts are only as good as the input that you use. Be sure to use reliable data and double-check formulas that you create in spreadsheet programs.

Forecasting

Forecasting your budget is more of an art than a science. The more research that you do the closer to accurate your numbers will be. Don't simply rely on your instincts. Check out past financial reports to see the ups and downs of your business. If you are starting a new company then you can also get information from other business owners who have companies similar to yours or by speaking with an accountant or business consultant that has knowledge of your industry.

Now that you are aware of the role of budgeting in your company and some of the tools that managers use in the process you are on track to creating a budget of your own. If you want to learn more about preparing forecasts for your business visit http://www.tbsusa.com