Your business may be booming, but do you really have a full picture of your company? Do you have yearly financial targets and goals to reach them in place?
If you don’t have a budget, then the answer is probably no.
It’s easy to get caught up in the day-to-day running of your business and forget about the big picture. But no matter how big or small your business is, having a budget is crucial for a number of reasons. Not only does a budget allow you monitor your performance, but it also highlights matters that deserve your attention and enables you to think about your goals and the future of your business.
Now you may think that creating a budget takes a lot of time and effort that you do not have, but it’s actually not as difficult as you may believe. Think of it as a time investment into the future of your company – doing the work on it now will allow you to maintain a sustainable operation by estimating your expenses and revenue. You can see where profits can be improved, where you can reduce costs, and where you can increase returns on investment. And just as crucial, you can be more prepared for seasonal highs and lows that your business has to face.
By following the system outlined below, you can build a budget in a few simple steps. Once this is done, you will have more clarity in your business and be able to use accounting reports to truly understand your financial performance.
A budget that’s planned and managed well is instrumental to monitoring the financial impact of operational plans and business decisions. It’s the most effective way of ensuring that you’re on track to your financial goals and gives you greater confidence and focus. By following the steps outlined above, you can easily build your budget and use reporting and KPIs to fully understand what is going on in your business and to put you in good stead for the future.
At ABJ Business Solutions, the objective is to provide SME’s with an expert business solution to: help their business lay the foundations for growth; put in place efficient processes; understand their numbers; use specific indicators to measure and drive business performance.
ABJ Business Solutions provides a complete finance solution covering bookkeeping, CFO expertise, tax strategy and compliance, along with innovative IT solutions – at an economical price.
The team demonstrates hands on expertise in embedding financial information as a core necessity for organisations through: the effective delivery of cash flow management, including satisfying bank requirements and negotiations; debtor control; accurate billing; reviewing monthly accounts against budget; maximising existing system reporting; planning and measuring the future through expert financial modelling; and partnering in the key decision-making events.
ABJ has a proven track record of cost control and profitability analysis by product lines, so that businesses have the confidence to know exactly where they stand and what they need to do to move forward successfully.
Every entrepreneur knows to build a business that works without you – a business that…