Budgeting & Cash-flow
Some months I end up putting money into the business to cover shortfalls, instead of drawing a wage?
I don’t know if I can afford to move to a larger workshop or hire an additional employee?
An accurate budget is an essential tool that can help your business to stay on track, and follow your business plan.
A budget offers business owners the opportunity to set financial targets and measure performance.
You can only measure progress towards your goals if you have the necessary signposts.
Cash flow forecasting compliments accurate budgeting perfectly, giving you the ability to identify whether you will be able to pay your expenses for the month, if you are holding too much inventory or when you can afford to expand. It also improves your ability to acquire finance.