Budgeting

Budgeting

Mapping out your business future

A key part of your business planning is your budget. Without a well thought out budget, you’ll have little chance of controlling that all-important cash flow. You won’t be able to plan for future expenditure or growth.

Keeping on top of expenditure
Is your business growing? If so, being hands-on with every part of it will be near impossible. You might find you have to split your budget between different parts – sales, production, marketing, etc. When money starts to move in different directions through your organisation, having a budget will be vital to ensuring that you stay right on top of spending.

What exactly is a budget?

A budget is a plan to

  • control your finances
  • ensure you can fund your commitments
  • enable you to make financial decisions and meet your objectives
  • ensure you have enough money for your future projects

A budget highlights where you’ll spend your money and how you’ll finance that spending. However, budgeting is different from forecasting. A forecast is a prediction of the future. A budget is a planned outcome that your business wants to achieve.

Why should I have a budget?

To help you to

  • manage your money effectively
  • allocate appropriate resources to projects
  • monitor performance
  • meet your objectives
  • improve decision-making
  • identify problems before they occur – such as the need to raise finance or cash flow difficulties
  • plan for the future
  • increase staff motivation

Are you budgeting correctly for the short, medium and long term future of your business? Talk to us about setting up a budget and using it to map your path to success. Get in touch. You’ll be pleased you did.

Contact us!

Tel – 01604 642727 or 01933 754050
Email – info@gwaccounting.co.uk
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