We recommend this service to all companies who are keen to grow.
A well set budget is a target for the future year. By comparing
regular accounts to the budget and investigating significant differences
it should be possible to meet reasonable targets and cut out wasteful
costs.
When the company is small, it’s easy
to control most financial aspects with very little effort.
Growing companies have to manage
increasing levels of volume and without good quality regular accounts
it is easy to miss an area of loss or profit opportunity for lack of
analysis of the figures.
Banks are keen to see budgets and
regular accounts when there is a substantial overdraft facility or
business loan in use.
Our Method of Operation
If we are not involved in your
bookkeeping ourselves, we will first check that the data entered for
the year to date is correct and will check the bookkeeping
periodically. We will then set up a rough budget layout and then have
a meeting with the MD or other senior manager to explain what
information is required.
We will set up the budget based on
this information and produce a cashflow projection. The budget and
cashflow can be regularly updated to reflect changing circumstances.
The key to a good budget is your time
spent on thinking about where your income and expenditure now and in
the future is going to come from. The more time you spend on planning
the figures the better a tool the budget will be for you to control
the costs and push up the sales.
Regular management accounts are then
produced by us and compared to the budget. We pinpoint areas of
concern for you to investigate. This will help you manage your
business efficiently and to spot useful trends.
How Would This Service Help You?
By regularly checking your accounts
in a detailed way you can ensure the business stays focussed on
creating profits. With a budget, cashflow and management accounts you
can work out in advance how to deal with one off large costs and see
patterns of costs that should be investigated early on.
You can use the sales budget as a
target and compare actuals against budgets to help your marketing
campaign generate real profit.
If your company is going to grow
substantially budgeting is a good tool to help you do this.
Call Frances today on 01737
559211 to discuss how we can help you grow your business.
