Simply put a budget is a road map of getting your business from A to B. It will show you where your business is productive, and not so productive, so changes can be made, resources moved or invested.
Key benefits of a budget are:
– It provides clarity and creates focus
– It provides clear targets for your business – sales and spending
– It is a roadmap to achieving your goals
– You can anticipate any future problems and make improvements
– It allows you to effectively control your cashflow
– It keeps your spending on track
Whether you’re a start up or established business a budget will help with your business journey.
Owning a business will cost you money before it has even started trading. A comprehensive budget will ensure your focus is in the right direction, cost-related decisions have firm financial backing and you have the confidence required to continue on your journey.
Are you growing? Are you using all your available resources in the correct manner? Are you seasonal? A budget will help answer all these questions and provide clarity and focus. A budget will help establish the sales required (clear targets) to achieve your financial goals and grow your company.
Other budget benefits
Once your business has set a budget it can then be used on a monthly or quarterly basis to assess where you are financially – there is no point in setting a budget and then not monitoring it and assessing your results in comparison! Monthly, or quarterly, management accounts compare budget to actual and shows where your business has achieved, exceeded or under performed. Your budget can then be tweaked to allow for this and focus can be maintained.
What is involved?
You’ll attend an initial meeting (Zoom or face to face), lasting no longer than two hours, where we’ll:
Determine your fixed monthly and annual overheads for the year ahead.
Establish your desired personal earnings for the year.
Set a sales budget to allow you to cover your overheads, and also reach your desired personal earnings for the year.
Ensure you are happy with your budget – that it realistic and achievable, and you are clear on your next steps to achieve your budget.
Once we have finalised your budget we will input this into your Xero so you can view your budget and run the Xero comparison report. We will also tweak your budget during the year as required.
How do I start?
If you want more certainty in your business let’s talk together about your future!
If you are not working with PPF yet, then please visit our Work With Us page, complete the quick questionnaire and book a discovery call with us today!