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Denver Accountant: Budget Fundamentals


October 16, 2020

Creating a budget may initially feel like a daunting task but whether you are running a business or a household, it can be one of the most useful tools to assist in tracking and helping plan your finances. Once established, monitoring your money becomes relatively easy, in addition to setting aside funds for emergencies, wish list items, and necessary expenditures. Not only can a budget give individuals a sense of control but it also provides a first-hand look at exactly where potential savings can be made in order to ensure that you are getting the most out of your revenue or paycheck.

A majority of Americans with credit cards have debt and although there may be legitimate reasons behind having to purchase items in this manner, a budget can also help to begin the process of lowering your bills and earning back some spending power. There are a variety of plans for paying down debt, but none can be executed properly without establishing a baseline via some type of financial monitoring tool. Following are a few key factors which can help to build a helpful budget and assist with getting a grip on your spending and financial situation today.  

Income

Spending over the amount that you routinely bring in is where debt begins. By starting with your income, be it monthly, weekly, or bi-weekly, individuals can create a starting figure to begin. Typically, no matter the manner in which you are paid, working with monthly numbers is best as most bills have to be paid on this schedule.

Goal

Once a starting figure for the money which will be earned during a month is revealed, then a goal should be set. Every situation is going to be different so what would you like the end result to be in your scenario? This is the goal - from having extra spending money, paying credit card bills, putting more toward the principal on a home, preparing an emergency fund, and everything in between - it is here where the bottom line should be established in monitoring the spending and in what manner it is to be executed.

Method

There are plenty of paid and free budgeting tools available for consumers. Study the ins and outs of each and select one which best fits your current goals and financial situation. These can help track your spending and ensure that you are staying on the right path to success.

Review/Adjust


After an extended length of time which has yielded some form of results, taking a look back and making adjustments where necessary is warranted. Perhaps money can be taken from one area and be better spent elsewhere or not enough was initially slated for some expense. Nothing should be too rigid, except for not exceeding the amount of money which will be brought in over the set time period.

If you’re ready to set up a budget for your household or company, then let the accounting and tax professionals at Bloch Rothman and Associates assist you today. In addition to providing answers to your spending and tax questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a quality tax service, our group can also complete all types of returns or answer any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!