Volume 1, Issue 2 - August 2016 Greetings Business Owner, I started a blog! Please check it out here. Last month Bookkeeping Buzz had a successful

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Volume 1, Issue 2 - August 2016


Greetings Business Owner,

I started a blog! Please check it out here.

Last month Bookkeeping Buzz had a successful first issue, well received. If there is something you would like to request as a subject, I am open to suggestions. Thanks again for your support.

You can unsubscribe at any time by clicking on the link at the bottom of the page. Feel free to forward to anyone who may be interested or check out my website for more details about Kipp's Books.

Have a great day,
Ali :)

Budgeting Breakthrough

Budgeting Breakthrough

When you hear the word “budget,” what do you think about? Most people would say something similar to “Ugghh!” If you would rather do just about anything besides create a budget, you’re not alone. The word “budget” brings up connotations of endless numbers, constraints, the opposite of freedom and creativity and hard work, none of which are very desirable.

Yet, the benefits of a budget are huge. Budgets can help you with cash flow improvements, keep you on track for higher profits and alert you to items needing further action.

From “Budget” to “Profit Plan”

To be successful with budgeting, we need to get rid of all of the connotations that go with the word. Perhaps it might work if we rename “budgeting” to “profit planning.” And then, rather than focus on how little we should spend, let’s start with how much revenue we are going to make.

Revenue Clarity

It’s simple to create a revenue plan if you go backwards. What revenue goal would you like to hit this year? Just like we would never get in a car without a final destination, a revenue plan gives us a number to aim for in our businesses.

Once you know your number, we can use averages to come up how many sales or clients we need to generate in order to meet our revenue goal. Here’s a quick example: Let’s say you want to reach $5 million in revenue this year. If you average order is $10,000, then you need 500 sales. If you have multiple products and services, then you will need to sum the product of the average sale times the needed number of sales for each line.

From there, you can make marketing and production plans based on the number of sales or clients you need.

Protecting Your Profit

Think of the expense side of your “profit plan” as protecting your profit margins so you can ensure financial gain from all the hard work you do. Setting budget limits on spending will allow you to control overhead and other items so you can keep more of what you make.

Exceptional Reporting

A great “profit plan” report will provide several things. You can compare budget to actual, or better yet, just be alerted to the accounts showing exceptions. You can also get an income statement comparing the current period with the prior year period so you can see how far you’ve come. One last option is a benchmark report which provides industry averages so you can measure how you fare compared to other companies in your industry.

A “profit plan” is a great tool for your business.


I hope you learned something from the article. To see more go to Kipp's Books website. To receive your FREE 30 minute consultation, call 201.739.4479 or email support@KippsBooks.com.

Kipps Bees

Check out my Blog here. and pass the information to anyone you feel will benefit from bookkeeping knowledge. Referrals are a strong part of my business and very much appreciated.

Thank you for your support,
Ali :)


Alison K.M. Lohr is a...
Certified Public Bookkeeper
QuickBooks Online Pro Advisor
Treasurer for the Jefferson Twp Chamber of Commerce
Member of the National Association of Certified Public Bookkeepers (NACPB)

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