CASH FLOW PLANNING/BUDGETING
Are you having trouble keeping up with your ATO payments? Feeling like you are always struggling to have enough cash in the bank to pay wages and suppliers? Then it may be time to put an effective budget in place.
What is Budgeting?
Budgeting is the process of creating a plan to spend your money. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.
Why put a budget in place?
A detailed and realistic budget is one of the most important tools for guiding you in your business. It provides the information that you need to operate within your means.
Without a budget, it can be like shooting in the dark. A solid budget identifies currently available money, provides an estimate of upcoming expenditure, and helps you to anticipate future revenue.
What are the benefits?
A budget that is shared gets everyone on the same page.
A budget helps you to see changes you need to make ahead of time, before a constraint or shortfall starts to occur.
A budget gives you a measuring stick of your business performance, allowing everyone to see which parts of the business perform the best.
A budget can be used to plan funding needs, if applicable, or allocate working capital you have.
Your accountant can help you with setting a budget for the year and monitoring it regularly, otherwise known as cash-flow planning.