If you have a budget from last year, review it closely. Try to find out why you missed or exceeded projections. Look into the numbers. Accurate overall totals might not tell the full story.
Don’t just forget about your budget until you begin the process again next year. Track it monthly and measure your progress. Examine discrepancies to find their cause. By doing so, you’ll steadily develop a fuller understanding of your finances.
Reliably measuring revenue and expenses strengthens your ability to predict what will happen in the future. That makes it easier to plan confidently.
