5 Tips on Budgeting for a Better 2022

Businesses have had to deal with the unprecedented economic impact of a pandemic throughout much of the past two years, with having to make drastic budget decisions. However, as the state of the world begins to improve, you can now start to look toward the future as you conduct your business’s financial planning. Budget for a better 2022 with these tips:

1. Consider Your Customer Base

Whether your company’s core customer base is consumers or other businesses, they have also likely changed their own budgets. Consider the likelihood of any changes in their discretionary income or operating costs and if your business could be impacted. This will help you account for any dips in revenue that could affect your budget – or alternatively, any projections for increased spending ability for your product or service.

2. Assess Previous Year’s Budget

Evaluate your 2021 budget to determine how accurately you were able to project revenue and expenses and the overall performance. Troubleshoot areas where you didn’t effectively allocate funds to determine changes necessary for 2022. Also, consider any significant cutbacks you made in 2021 that will now be necessary to spend on in 2022. 

3. Plan New Expenses Strategically

As you contemplate how to allocate your business’s budget, brainstorm first and foremost on potential low-cost, high-impact alternatives for how you previously spent funds. This is particularly important if you’re still facing uncertainty for your industry overall. For example, it may make more fiscal sense to utilize your talent acquisition budget on implementing an employee referral program and establishing a relationship with a staffing agency as opposed to utilizing it on advertising openings. 

4. Review Current Prices

The COVID-19 pandemic has resulted in cost increases for items, as well as supply chain issues and overall shortages. Review the current prices for specific items for your budget to ensure they have not significantly increased from the year prior. This will ensure you are not caught off-guard by any unexpected price jumps that could throw your budget off. 

5. Build Up Your Savings Buffer

The importance of having liquid cash reserves on hand for the unexpected was proven during the pandemic. Although conditions are looking much more favorable for 2022, it is still a good idea to build up a buffer for savings in case of an emergency. These reserves can help keep your business afloat if needed, so prioritize setting aside money in your budget to be prepared. 

Build a Team of Top Talent

Find qualified candidates to join your team in 2022 by working with The Hire Firm for your recruitment needs. With nearly three decades of experience in recruitment and staffing in New Mexico, The Hire Firm will find qualified candidates that will be a successful fit. Contact us today to learn more about our employer services. 

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