The slightest discrepancy in your cash flow budget can result in you not knowing if your business is over performing or underperforming!
This is why you need a solid financial budget for your business.
I have just the tool for you…
What is a cash flow budget?
It's an estimate of all cash receipts and payments you expect to take place during a certain period. And it's an essential part of solid financial and account management.
Your cash flow budget can show you if you have enough money to pay the bills at the end of the month. It's a short-term financial management tool you need. Without it, you won't be able to identify potential money problems in your business.
So follow these 13 steps to set up your comprehensive cash flow budget
. And revise and revisit it regularly to make sure your plans are up-to-date.
Read on to find out why you need a cash flow budget...
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A simple excel spreadsheet alone won't help you budget effectively!
You need to know how to:
Use all the Excel formulas correctly;
Enter data using forms;
Remove and multiple subtotals;
Use PivotTables and more…
That's why Excel Guru and certified Chartered Accountant Adrian Miric developed the Practical Guide to Excel CD
. In it, he shows you how the Excel functions and formulas you need right now to reduce stressful and tiring work within minutes of data processing. Get your copy here…
4 Reasons why you must have a cash flow budget
1. It gives you greater control
You can make decisions based on expected outcome of events. For example, if you see debtors don't pay within their terms, you can address the situation with early payment terms.
2. It gives you a target or objective to work towards
You can use targets to compensate good performance and motivate employees. Set the targets to levels where you know you'll be able to meet and exceed all financial obligations.
3. It provides a means to effectively measure your companies' targets and performance
How else will you know your company is profitable? Or even if it's a viable venture to continue with, unless you can measure the performance.
4. It helps you plan
You can make plans and decisions in advance about your cash flow. For instance, if you see you will not have enough money to pay your expenses, negotiate better payment terms with your creditors.
For a template of a well thought-out cash flow budget and 9 other budgets that will make your budgeting tasks a breeze, simply follow this link.
Need to draw up correct financial statements for your business? Here's the one complete guide
you need to compile 100% legally compliant income statements and balance sheets