Has your bank asked you for a cash flow forecast and budget for your business?
Do you know if your business is generating enough cash to cover your regular drawings?
A good budget is a necessity in a good business plan. It is one of the best business tools we have, allowing us to set financial targets and measure our performance.
The techniques we utilise in the formation of financial projections will allow you to consider future scenarios and give you goals to strive for in your business.
In addition to goal setting value, budgets will often improve your chances of acquiring funding as financiers often require forecasts as a prerequisite for funding approval. Cash flow forecasting is a vital part of ensuring your business will always have the cash it needs, because profits don’t pay bills – cash does.
Preparing a cash flow forecast and budget will give you the opportunity to consider where money is coming from and where it is going to.
If you take into account your ‘known’ costs and your expected costs, you can determine what your sales need to be and how much cash will be generated by your business.
This will allow you to plan your income and expenditure into the future.
Call us today and ask for our free budgeting and cashflow spreadsheet .