Budgeting and cash flow go hand in hand. A budget is a forecasting tool which designates where income and expenditure will occur within a defined time period. Accordingly, it is a necessary instrument for determining the cash flow required to sustain other aspects of a business. Budgets help to create certainty for a business by providing a focus for activities such as the staffing, training and marketing required to achieve the predicted sales.
The majority of businesses will prepare a budget which exclusively focuses on either profitability, cash flow or the balance sheet. At Advisory Partners, we’ve developed a ‘three way budget model’ which incorporates all of these into one.
A carefully prepared and monitored budget assists management greatly by creating the ability to quickly assess the impact of key variables. These may include sales volumes, efficiency factors, pricing, and exchange rate movements.
The Advisory Partners Budgeting and Cash Flow service includes –
- Month by month analysis of income and expenses
- Anticipated bank balances at the end of each month
- Predicted annual result for profit and tax position,
- Tailored reporting to external parties such as banks and other investors,
- Ability to track actual to budget reporting,
- Ability to update the budget if any known factors are likely to impact on the business.
Accurate budgeting can often be the difference between a profitable business and one which struggles. Call in for a discussion to learn how the Advisory Partners Budgeting and Cash Flow service can help to keep your business in the black.
