Best Business Practice – Series

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Variable vs Fixed Expenses

Businesses have both variable and fixed expenses. During the budget process these should be looked at differently. One will remain the same dollar wise but fluctuate by percentage of income. The other will fluctuate dollar wise but remain the same as a percentage of income. It’s important to identify which type of expense they are during the budget process.


Think of your budget as a roadmap to your business. By reviewing your budget and comparing it to your actual expenses it will let you know if you are staying on track or not.

Your budget will show the good and the bad. Both are equally important to know when running your business.

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