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It's possible to misspend R3.65 billion if you don't have this solution

by , 26 September 2013
A recent news article on government spending reported that Public Works has misspent R3.65 billion since 2009. That is a staggering amount of money to misspend! But this phenomenon isn't limited to the public sector.


If you don't have proper budgeting processes in place, you could find your business in this situation. Let's have a closer look at how to control spending in your business…

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Four budgets to control spending in your business…

The operating budget is the mother of all budgets. It contains a lot of smaller budgets that you can use. The question is – what is the best budget for your business? There's not just one answer. You first need to understand what the budgets actually do, before you decide on the one that's right for you. Here are four budgets that form part of the Operating budget.
1.    A Cash flow budget helps manage and plan the financial spending of your business. It's a plan for saving, borrowing and spending money.
2.    The Financial budget is a tool to help you plan your operations. It's a forecast of revenues and expenditures. It forces you to think about all the factors that could affect the profit or loss you'll eventually make. You can then decide well in advance on steps to take.

Keep reading for two more budgets you can use to control spending in your business…

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You'll gain a financial education in just two days! And if you book and pay by 3 October then you'll SAVE 20% with our Early Bird Discount. Click here for more information or email preesha@fsp.co.za

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Two more budgets you can use to control spending in your business

3.     A Sales budget's a way for your business to predict turnover the business will reach per period.
4.    A Raw material budget will show you how much material you need for production – so you don't overspend.

If you want an in-depth look at these budgets, turn to your Practical Accountancy Loose Leaf where we have a chapter on each of these budgets, with examples and templates for you to get cracking on implementing them. Don't have a Practical Accountancy Loose leaf? Click here


Until next time,
Philip Rosenberg

Product manager, Practical Accountancy Loose Leaf

P.S Save your company R1 million rand in the next 20 minutes
Want to know how to be 100% compliant with the Companies Act so your company dodges R1 million in SARS penalties? Click here to find out how





 



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