Happy New Year all! We hope you enjoyed the holiday season with family and friends. In our previous commercial blog post, we discussed how to apply for a small business loan and what the application process involves. Today, given that it is the beginning of a new year, we will discuss how to develop a budget.

The budgeting process varies depending on the size and needs of your business. For larger entities, you will likely work within your accounting software and with your accountant. For smaller businesses, it may be as simple as a Microsoft Excel spreadsheet. Both of these are viable ways to plan for the next twelve months. If you have never created a full budget before, start small and plan for just the upcoming month. Begin with your known monthly expenses, such as rent or mortgage payments, utilities, insurance, other loan payments, and payroll. Then, factor in your recurring revenues or confirmed jobs that will generate income during the period. Remember to include some flexibility to account for unexpected expenses. Now, repeat the process for the subsequent months and you will have a full budget for the entire year.

Regardless of your company’s size, budgeting is not just a once-a-year exercise. It is an ongoing tool to see how your business has performed compared to what you initially thought. By reviewing the difference between projections and actual results, you can uncover valuable insights, such as identifying new revenue opportunities or recognizing when costs are higher than anticipated. This enables you to make timely adjustments and optimize your business in real time. Start small, stay committed, and watch your business reach new heights.

We wish you the best in 2025! If you need guidance with budgeting or financial planning for your business, reach out to Cameron Ohlendorf, Executive Vice President or John Lockie, Senior Vice President – Commercial Lending.

About First Community Bank and Trust
First Community Bank and Trust is a privately-owned bank. Established in 1916 First Community Bank and Trust has been serving Beecher, IL, Peotone, IL and the surrounding communities for over 108 years. Our commitment to providing the best banking products and services is matched only by our outstanding customer service. We offer traditional community banking services, including mortgage, consumer, and commercial lending, as well as state of the art electronic banking services.

Press Contact:
Steve Koehn, Senior Vice President
First Community Bank and Trust
(708) 946-2246

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