Budget. Many creative individuals avoid using this word. There is a fear that any financial discussions can lead to a premature death or even worse, a loss of all creative talents. This is not true. You will not be less creative if you look at a Profit & Loss statement. You will be more informed. “Let someone else worry about the numbers, I want to focus on my craft” a client once said to me. He is not alone in that thinking. Hell, It was six years before I explored the “Set-Up Budget” area in Quickbooks.
I’m not suggesting that you should become a CPA, fire your bookkeeper, and take on all accounting responsibilities yourself. In fact, if you have the resources you should build a solid team of individuals that eat, sleep, and dream about maintaining your financial picture. What I am suggesting however is to get to know your books enough so you can make informed decisions.
It’s not too late to put together a 2012 budget. With two months of expenses in the books, this is not a bad time at all. My annual budget was no more than a piece of string on my finger, a reminder of the goals I set out for myself. Follow the same instincts that put you in a position to run a company, then use your budget to confirm those instincts are in line with your annual goals.