Following the recent budget speech, many companies are looking at their budgets and plans for 2016, reviewing, amending and improving said budgets to best suit and support their business.
It is for this reason that we have decided to identify a number of things – Important things – that we feel businesses should endeavour to include in their budget this year!
- Company Benefits
Company benefits aka employee benefits include various types of non-wage compensations that are provided to employees in addition to their normal wages or monthly salaries. These benefits include things such as pensions, health care and so forth. Important to your business? The answer is yes!
Ensuring that you set aside budget for company benefits is essential in that it adds value, not only to your company, but to your organisational culture as well.
Giving back to your employees and providing them with such benefits is said to increase employee loyalty and satisfaction by creating a positive relationship between employer and employee, and we all know that happy employees leads to satisfied customers.
- Accounting/Bookkeeping services
Overlooked by many, accounting or bookkeeping services are one of, if not the most important expense items that companies should be including in their budgets this year and for many years to come!
When running a business, ensuring that your expenses are paid; your books balance correctly and all of your tax and SARS payments and requirements are met in a timeous manner keeps your company running smoothly and can prevent you from falling into trouble with the dreaded tax man.
Accounting and bookkeeping services will help you to stay on top of your finances and keep your budget for the year in check at all times.
It would surprise you to know the amount of companies who do not set aside budget for marketing and advertising expenses.
Including marketing and advertising expenses into your budget is a great way to ensure that your company is generating sales and making a profit.
Now we know a lot of businesses will rely on word-of-mouth marketing to advertise for them; which, don’t get us wrong, is identified as one of the best ways to advertise BUT there is only so much this can do for your brand or business.
By bringing in and setting aside a budget for marketing and advertising you are ensuring that your brand or business is getting the recognition you feel they deserve on platforms that have been identified as specifically targeting the correct consumers according to your product and/or service offering.
- Corporate Social Responsibility
Corporate Social Responsibility deals with the voluntary activities that are undertaken by companies and businesses to operate in an economic, social and environmentally sustainable manner, and should be on your list of expenses.
In a world where people and communities are suffering; where there is a lack of education; a lack of healthy drinking water; a huge rise in unemployment levels and an overall rise in poverty, it is vital that those who have the means to, give back and this is where corporate social responsibility comes in.
There are a number of ways companies are able to aid community upliftment through their internal and external operations as well as by giving back to communities through the provision of necessary resources such as education, employment, training and skills development.
Training is an important aspect for any business. It is not a given that companies will hire employees who tick all the boxes in terms of the experience needed, which is where training programmes and budgets come in. Not only can these be used internally for staff that have already been hired, but it is a great way for companies to create jobs and education opportunities for those less fortunate.
Incorporating budget for training expenses is a must in today’s day and age where staff turn around has seen an increase and the staff demographics are seeing a rise in opportunities for younger employees.
Above are just a few items we believe should be on your business’s budget. If you need assistance compiling a budget or any other accounting query, get in contact today and we’ll gladly assist.