This is because budgeting helps small businesses focus.
An essential part of budgeting is allowing some wiggle room.
“Allow for a little flexibility in your budget, because too much rigidity is impractical and will not allow for unforeseen circumstances,” said David Ambrogio, consultant for Tower Books, a small business bookkeeping and consulting firm.
These unforeseen expenses could potentially have been avoided with a budget.
Yet, a budget cannot account for every cost that comes up during a financial period.