Do you do an annual budget for you company?
I have the belief that a business owner should have an understanding on where their money is coming from, who their money is coming from and when their money is going to come in.
From the opposite side of the ledger, they should know where their money is going, when it is due and to whom they are paying. All before it is due.
To assist in the facilitation of this endeavor, a budget is a reasonable tool. I am currently working with a client that bought out their partner last year. This year has had more than its shares of ups and downs and so I proposed the preparation of a budget for 2017 to assist with the management of cash flow.
Because the revenue is somewhat cyclical, we are preparing an expense budget. Focusing on the payroll, payroll taxes, rent, utilities, other fixed and recurring expenses. This will allow them to have a monthly baseline of total base expenses on a monthly cash needs before any expenditure for cost of goods sold.
If you are in need of assistance with your budget process, let us assist.