As you may know, I am a regular contributor of articles pertaining to accounting and bookkeeping for the equine industry to Desert Mirage Magazine, a print and digital Arabian Horse publication that focuses on the unique beauty, intelligence, versatility and prestige of the Arabian horse. My recent article, “Budgeting for Your Horse Business,” discusses how creating a budget for future years forces you to think about the direction you want your business to go and chart a course to get there, and why is it that most horse people don’t do it unless they’re forced to.
In the article, I outline the process of creating a budget, and discuss each task in detail, which include:
- Creating a list of monthly expenses, based on your historical spending
- Listing income from all sources
- Comparing expenses against income
- Customizing the budget, and adjusting for future expectations
- Adjusting and re-adjusting as necessary to create the strategy you want for your business
- Planning for the most efficient use of excess funds
One of the hardest parts about creating a budget is forcing yourself to sit down and do it. Once you overcome that hurdle, you’ll likely find that all of your thoughts and knowledge regarding your business flows quickly. Developing your first budget and developing the habit of reviewing it on a regular basis will be a challenge. But forcing yourself to do it is one of the best things you can do for your business, and will be well worth it in the long run. Understanding your income and expenses is a necessity for success. Once you get a handle on your budget, you will worry less about your finances, and have more time to enjoy living your life.
For more information, read the complete article, “Budgeting for Your Horse Business.” (PDF opens in new window)
Good luck with your budget!
