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Ever gotten that feeling of anger and despair when you thought of working out a budget? Then chances are you've never looked up the word in a good dictionary and learned all about what this word really means, and thought about how you can use that to your business's financial advantage.

Want some really good News? Operating your company on a budget does not entail reducing the quality of the things you buy or denying your company anything it needs to operate. What it does mean, is that you have to work out how to make enough money to afford the items your business has to have and to keep your spending under your income.

The even better news is this! The most valuable asset you have is you and your staff, and your income earning potential. If you want more money to spend, then work out how your staff and you can increase production to earn more money.

A second definition you need know is this: a BUDGET is the sum total of the money needed for the organization to do business, and to attain its goals.

Let's consider the first part of the definition; how much is needed for you and your business to function. Look at your Profit & Loss Statement to find out how much you spent and add the amount you are carrying on credit cards plus interest. Divide the total by 52 weeks, and multiply it by 1.036. The result is what your weekly budget is. That is the amount of income your company has to generate just to function plus barely keep up with rising prices. That doesn't include paying compund interest on credit card debt.

More than likely, you have financial goals you also want the business to attain; That's the second part of the definition. Reaching those goals must get added to your budget as well.

For example: a company owner wants to purchase new office furniture 6 months from now that costs $2,000. They divide the cost of the furniture by the 26 weeks they have before the target purchase date and learn they have to set aside $76.92 every week to have the cash for the furniture. This gets added to the budget, meaning the additional amount of income they have to put into the bank every week.

Most importantly, if you, the company owner, want to attain the goal of financial freedom - working because you WANT TO instead of because you HAVE TO -- then the most important part of the budget needs to be the wealth building cash you set aside in a savings plan and never spend.

Work out the amount of cash you would have to have in savings to live without working. Divide that dollar amount by the number of weeks until the time you would like to be financially independent. Work out how to make that much more income each week, and your budget is on the correct path to gaining financial freedom.

How badly do you want to be a millionaire in 20 years? Work out a way to increase the company's income enough to put away $961.54 a week in savings for the next 1,040 weeks and you will be a millionaire! The additional interest growth on top of that will be a a nice add on perk that more than keeps up with the rise in the cost of living every year.

In this day and age of computers this task of budgeting is made so much easier by streamlined and automated Money Management Software, such as shown in this video.. This software operates as a companion to your accounting software for really easy day-to-day operation.