Following on from my last blog which was on planning this one talks about budgets and forecasting.
So, you have a great strategic plan, you have goals and targets, but can you turn this into a viable business proposition? Will it make a profit? And even if it will, when will the money hit the bank?
We know that not everyone “gets” accounts! But they’re the way of recording the financial impact of what’s going on in the business; they measure the results of what actually happens.
Putting the two together, a budget is the financial version of a plan. It’s a prediction of what you think the numbers will be as a result of how you expect the business to operate. For example: if you’re going to introduce a new line of sales, what impact do you think it will have? What income will it bring in? What will it cost you to bring it to market? Will you have to employ more people to bring it to market? Will you need to pay more overheads? Read More »