Reviewing Your Budget and Planning Ahead – Are You Ready?

budget review

Let’s Do a Budget Review and Plan Ahead for Next Year!

During the month of May, I like to do my annual budget review to see how my businesses are doing.  This allows me to update any expenses and plan ahead for next year. It also helps me see if/where I fell short anywhere, or see if I there are marketing avenues I’m using that are not returning my investment.  Let’s be honest – for most of us, this is not a fun process.  I get it, I do.  It can either be a scary process because numbers just “aren’t our thing”, or we don’t want to see where we “wasted money” if something didn’t work.  

So I thought I would write this blog to help encourage those of you who need a little extra boost of motivation 😉  You’re not alone, there are so many business owners out there that don’t want to or even forget to do this every year. Let’s all support and encourage each other to take a look at our budgets and see how we can grow our businesses next year!  Are you ready? 😉

Here’s my Seven Step Budget Review Process, in case it helps you on yours.  If not, no big deal – find your own system that works for you and your business.  There is no right or wrong way to review your budget, just as long as it happens!  I use Asana to help keep this checklist updated and so it rolls over for next year. 

Step 1 – Update my expenses.  Throughout the year, if I notice any increase in subscription rates or if I add any new expenses on, I make a note in Asana with my budget task.  That way, it is all there when I go to look at it the following year.  So, first thing I do is pull up my previous year’s budget and put those changes into the new budget and save it as a new document.  

Step 2 – Look at my marketing outlets and ROI.  Last month I reviewed my marketing plan. If I removed any that weren’t working or added new ones, I made a note in the Budget task to be updated here. This is where I can review them and decide whether to keep them in the budget or not.

Step 3 -  Delete any expenses that are no longer needed.  If I got rid of something over the past year, then I delete it off the list.  Why keep budgeting for it if I don’t need to? 😉

Step 4 – Update my income items. Did I raise my rates over the past year? Did I add a new service or product that would bring in extra income? Make sure to add that so you have a valid estimate for your net.

Step 5 – Decide whether to raise my rates or not.  We hate to do it, but with inflation and products constantly changing, there is a time when rates need to increase or you have to increase your prices on the products you sell to cover your expenses.  You are doing what is best for your business.  Clients and customers who are loyal will understand if you tell them up front, with honesty, and from a place of kindness versus springing it on them all of the sudden.

Step 6 – Decide whether to expand my practice with another client or not.  This is also another way to increase my income, but it also takes a look at my calendar to determine if my hours can handle it.  I don’t want to put myself in a position where I can’t meet all my hours and give a quality service to my clients. Or that I am stressed because I feel like I am ALWAYS working.  Do you need to offer a new product or service in your business to help reach more clients/customers?

Step 7 – Update my business plan/Welcome Packet with new budget and rates if needed.  Don’t forget to update your Business Plan with your new budget every year.  This will give you something to look at next year when you review it again 🙂


So there it is – my Seven Step Budget Review Process.  It doesn’t work for everybody, but it works for me.  What do you find helpful when reviewing your budget?

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  1. Pingback: Tools to Help You Budget - Julie J Davis, Virtual Assistant

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