Setting a budget is a critical aspect of expense management. A well-planned budget helps in forecasting and allocating resources efficiently. Hereâs how to set a budget:
Identify Fixed and Variable Costs: Separate fixed costs (rent, salaries) from variable costs (marketing, travel). Use Historical Data: Analyze past expenses to forecast future costs and set realistic budgets. Set Priorities: Allocate funds to high-priority areas that drive revenue and growth. Monitor and Adjust: Continually monitor expenses against the budget and make adjustments as needed.