The 2018 budget speech is important to anyone who takes an interest in state of South Africa’s economic wellbeing. But it is especially important to business owners as it gives them a pretty solid idea of what they can expect in two crucial parts of their businesses. These are:
With the government having put the prospect of free higher education on the table, they may well be looking for a way to offer this without going deeper into debt. And, to do this, we may well see an increase in VAT. This could affect your business’s pricing structure as well as the amount of disposable income your customers will have over the course of the year.
Getting a better view on what is proposed over the course of the year will also provide a better view on how the strength of the rand may fluctuate. If the rand looks set to remain weak, export opportunities may open up as your business can offer very attractive prices to offshore clients from strong economies.
But, the 2018 budget speech can be used as a means of inspiration as well as information. If budgeting is not a major part of your accounting process, use South Africa’s budget speech as inspiration to start creating a more in-depth budget for your business.
What can a detailed budget do for your business? Here are a few of the advantages.
How a Sound Budget Helps Your Business
- Get a Clear Picture of Your Spending
First and foremost, a budget lets you look retrospectively at your use of funds over the past year (or years). By giving your business a good internal audit, you are able to tell exactly where your funds are going, and if your money is being squandered.
- Check Your Numbers against Your Projections
Another important feature of proper budgeting is the ability to weigh retrospective performance against your projections. If you monitor your finances and find that your accounts are significantly different from your estimates, you’ll know which areas of your budget need to be addressed.
- Make Sure Your Business Is Compliant
Ensuring that your business is operating within the law can be difficult if you don’t have a crystal clear view of your accounts. By monitoring your accounts closely, you’ll know exactly where your income and expenditure sits and be able to turn in accurate tax submissions.
- Plan for the Future
By keeping an accurate budget, you know exactly what your business is spending on certain endeavours. This provides useful information about future spending, allowing you to allocate funds from an informed viewpoint.
Use the 2018 Budget Speech as a Springboard
The information contained in the 2018 budget speech will likely affect how your business performs this year, so it may be necessary to make certain changes to your business with regards to the state of the national budget.
But, you can also ensure that your business performs better by focussing on your own budget. And, fortunately, this is made easy with the right accounting software.
To find out how to manage your accounts quickly and easily, and reap the rewards of an accurate and up-to-date budget, contact QuickBooks today on 010 203 4300 or email@example.com!