Businesses start and operate better with well-informed advice. Do you have a live budget and cashflow forecast? Do you know your business’ trading position for the next financial year? Budgets give you accurate, up-to-the-minute financial information you need to make the right decisions for your future. They are an essential management tool that plays a crucial role in planning and managing the successful growth of your business.
Producing profit & loss statements, balance sheets and cash flow forecasts is an essential discipline practiced by successful business around the globe. We can help you design and build a realistic budget for the year(s) ahead. Our fully integrated software is faster than using a spreadsheet, and eliminates the undetected errors that always manage to creep into even the best of any spreadsheets. It provides automatic calculation of GST, company tax, bank interest and loan repayments, etc. Our software uses a double entry approach, so you can be confident about data integrity when presenting professional quality models to a bank, board of directors, client or potential investor. It also allows you to provide a forecast of what the balance sheet will look like in the future as well.
The budget should be a regular management tool, as it is the backbone of every successful business. Your pricing for goods and services must reflect the cost of running your business for the year ahead, not for the year that’s finished. We understand your need to remain competitive, but at the same time it is critical to establish a price that will cover your costs and deliver a healthy profit and commercial return for your business in the year ahead.
Remember that you are a business and not a charity and as your business costs increase, in order to continue to thrive and grow, you must unapologetically pass these operating costs on to your clients. Without a budget you cannot measure these costs accurately and pinpoint your desired profitability position.
Budgeting and forecasting give you the tools to be successful!
If you would like us to help you put budgets and cash flows together, please do not hesitate to contact us. In next month’s newsletter we will discuss the FAQ’s of budgets.
*Correct as of December 2014
*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this article, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under professional standards legislation.