When Budgeting Isn’t Enough

by | Aug 29, 2022 | Cash Management, Process | 0 comments

Unless you’re an interior design bookkeeper or accountant by trade, budgeting is probably the tool that first comes to mind when you think about managing your money. From personal finances to your interior design business, budgeting is often the first and only step people take to get their money in order.

The hardest thing about budgeting is getting into the habit of doing it. 

It can feel productive to set your projected income and spending, but it can also be hard to know how to move forward once you do that. It’s easy to make excuses for areas where you overspent in your budget, and simply tell yourself “I’ll be sure to spend less next month.” 

But often the same old patterns emerge again and again. And instead of making some meaningful changes, you just keep budgeting like you always have! Or even worse, your budget falls to the wayside completely because it’s overwhelming and takes up too much of your time. 

This doesn’t mean that annual forecasting isn’t useful. It’s a necessary building block to understanding where your money comes from and where it’s going! But we’re here to encourage you to not stop there. 

When you use Profit First, the money you spend on a given area in a given month is predetermined. Rather than retroactively analyzing your finances, the allocations you make for each of your Profit First bank accounts set you up to spend exactly what you need to – nothing more and nothing less. 

While Profit First bookkeeping does take some work to set up, it doesn’t require the same kind of upkeep and confusion that relying on budgeting alone can often create. 

If you’re ready to move from confusion to confidence in your business’s finances, schedule a call today with a Profit First Professional at Account Solve!

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