One of the important keys to business success lies in budget management. Why is budgeting so important for business? How can budgeting be easy and practical with Jago Pockets?
The Importance of Budgeting in Business
1. Avoiding fines and debts
There are a number of things that must be paid monthly while running a business, such as rental fees, utility bills, internet and telephone bills.
When creating a budget, you need to ensure that all of the above are included as expenses. By doing so, you will not forget to make payments, thus avoiding fines and debts.
2. Keeping cash flow positive
Budgeting can keep cash flow positive and maintain the financial health of your business. Through proper budgeting, you will know exactly how much expenses and income you get from the business you are running. The income must always be greater than the expense to avoid negative cash flow.
3. Growing business
Every business owner certainly wants their business to grow. Budgeting can help you achieve that goal. You will have a clearer picture of how much budget is needed to grow your business and whether you can provide the required funds.
4. Making the right business decisions
As a business owner, you are usually in charge of making business decisions. With a good grasp of the budget, you can make decisions that have positive impacts on the business, such as opportunities to improve business operations, increase employee salaries, etc.
Easy and Practical Budgeting With Jago Pockets
With various business expenses, doing your budget manually will be too cumbersome. Ease and practicality in budgeting are offered by the Pocket feature in the Jago application.
You can create up to 20 Business Pockets to manage business needs such as paying employee salaries, monthly bills, marketing and advertising costs and paying suppliers. Meanwhile, to manage your personal needs, you can also create up to 20 Spending Pockets and 20 Saving Pockets.
After that, you can allocate a budget to each Pocket that has been created. The steps are super easy:
1. On your Pockets tab, choose the Pocket you wish to add money.
2. Tap the Add Money button.
3. Type in how much money you want to add.
4. Choose the source Pocket for your money.
5. Tap Add Money to finalize.
You can also check out our guide with visuals here.
It is also interesting to know that your Business Pocket can be linked to a debit card. This way, it will be easier for you to transact, make payments and make cash withdrawals for your business needs.
If you want to monitor expenses more easily, you can create Pocket Tabs to group your Pockets according to their types or payment frequency. For example, there are many types of monthly bills. If you separate your electricity bill and internet bill into different Pockets, you can group them into one tab. Tab names can also be personalized as needed.
To create a new Pocket Tab, the steps are as follows:
1. On the Pockets page, tap and hold the Pocket you want to move.
2. Tap Add to other tab.
3. Choose New Tab.
4. Rename the tab's name, then tap Save.
5. Your selected Pocket will be moved to the new tab you just created.
There is one more feature that you can also use to improve business efficiency, namely the Plan Ahead feature. As the name implies, the Plan Ahead feature allows you to schedule recurring transactions and automatic payments.
Therefore, the Plan Ahead feature is perfect for helping you transfer employee salaries and pay various monthly bills on time without you having to transfer manually. You can find out more about the Plan Ahead feature in the FAQ - Plan Ahead.
Let's start budgeting to enjoy all the benefits above. And, don’t forget to use the Jago application to help you. The Jago application can be downloaded here if you don't have it yet.
