Amazingly simple way to manage your 2016 financial budgets
I'm not sure about you, but this time of year stresses me out. With just two months left of 2015, there's so much I haven't done that I set out to do.
And there's not much time left to get it all done.
Fortunately budgeting wasn't one of them. I've spent the last month working on this year's financials, and forecasting for 2016.
It's never an easy task, and one I've always battled with. Not knowing which is the correct format to set up my budgets. Invariably I leave out important columns and items in my spreadsheets and then sit and wonder why my budgets don't work out the way they should. And this year was going to be no different.
Unless I did something about it.
So, I did some research to see what I could find to make my budgeting and forecasting for 2016 a breeze. And I came across a book called the Master Budget Series.
By following the advice and using the templates in this book, I sailed through my budgets for next year.
I hope after reading my book review below, you'll make the same decision I did to make your budgeting and forecasting for 2016 the easiest thing you've done this year.
When new expenses arise, did you imagine they would be a source of so many serious problems for your business cash flow?
Every year you have to set out time to do your annual financial budget for the next year. You could have encountered serious expenses this year and not adjusted or taken into consideration your financial budget for the current year. This can impact your business cash flow position and you won't know if your money is working for you or not.
Even the slightest discrepancy in your financial budget can result in you not knowing whether your business is over performing or underperforming.
In the book Master Budget Series, you'll find ten budget templates to forecast and manage your costs, like:
Pay special attention to your:
Operating budget – You have to monitor your income and expenses from sales right through to production. We show you how to easily identify if your money is working for you, which departments are over- or under-performing and how to keep a closer eye on expenses vs. income.
Sales budget – This budget helps you benchmark your goals so you can reach them whether you launch a new product, update your existing budget or start a new business.
Sales expense budget – This shows you how to budget for advertising and cellular expenses correctly and the nine other sales expenses most people overlook. You'll learn how to create a Sales expense budget in nine easy steps.
Production budget – Find the right balance and the production line will continue uninterrupted and meet consumer demand. We'll show you how to plan your Production budget perfectly and the four red-flags to look out for so you don't miscalculate your budget.
Direct material budget – Make sure your production is at maximum capacity so you can fulfil all your orders on time. The Direct Material budget's the one tool to help you achieve this.
Direct labour budget – If sales increase, it creates a knock on effect in your business. Production rises and to keep up, you have to hire more staff. If sales go down again, you'll need to reduce costs, and get rid of staff. The most efficient way to manage these fluctuations is with a Direct labour budget.
Manufacturing overhead budget – It's easy to incorrectly include overhead expenses as direct material or direct labour expenses. You then risk pricing your products incorrectly and you'll end up less profitable! Use the manufacturing overhead budget to learn how to account for manufacturing overhead expenses correctly.
Cash flow budget – If you run a business, you must have a cash flow budget. A cash flow budget helps you identify potential cash flow problems by managing your cash flow, expenses and income better. We'll show you how...
General and administrative expense budget – Your business has many operating expenses during the year. These include general and administrative expenses like accounting fees, postage fees, office supplies and entertainment expenses. We'll show you the 14 golden rules to minimise your operating expenses.
Financial budget – With this financial budget you can plan for the future, stay in control of costs, and make better financial and business decisions. We'll show you how in three easy steps.
You can use them individually or while you create your operating budget. You'll draw figures from these budgets so you can keep control of costs and maximise profit. Each budget chapter comes with a free Excel budget template for you to customise and use straight away.
By using Master Budget Series, I was able to:
Ensure my money is working for me;
Expose which departments are over- or under-performing;
Correctly interpret all ambiguous situations; and
Keep a closer eye on expenses compared to income.
Armed with Master Budget Series, you'll have the power to take complete control of your company's financial position.
Get your copy here
Good luck with your budgets