We keep hearing that SMEs don’t do budgets. It’s too much work, too hard to do, or pointless because it’s forgotten within a month.
We agree. Up until now it has been too hard. But accountants tell us that to get control of your business finances and to plan for growth, you need not only to prepare a budget, but do regular variance reporting against your actuals.
So we’ve built a budget manager into Xero. And it’s easy.
Doing a budget can be a chore, so we’ve tried to make it easy by keeping it simple. The budget manager screen in Xero allows you to enter your budget for all income and expense accounts, for the whole year on one screen. The screen mimics your P&L, so its easy to understand where to put everything and you’ll get updated totals as you go.
Simple formulas allow you to apply your budget to every month during the year so you can enter your budget once and then focus on the exceptions. We also help you budget for growth by adding fixed or variable monthly growth to your budget.
Budgeting is an easy step to understanding your business performance and it’s a good way of helping your accountant and advisors know what your goals are for the year, so that using Xero, they can help you to achieve them.
Another improvement we’ve made is to the format of PDF invoices. Thanks for all your feedback on this.