Budgeting

Budgeting is a good and useful discipline for running your own business, whether you are self-employed or running limited company. It helps to plan ahead and control expenses and cash flow.

Budgeting is the system of planning ahead – looking at how sales can be generated, how much income they will bring in, what sort of margin will be earned from that, what sort of expenses will or would be incurred and how it will all be funded.

It can be a useful tool to consider not just when your business will generate sales but more importantly, when it will receive the money from your customers. Raising the sales invoice is only the start and each customer will be asking for generous payment terms.

Banks often ask for budgets and forecasts when considering a company, sole trader or partnership for a loan or overdraft decision.

If you want to know more or talk about your specific situation, call us and we will talk it through with you.