Information is power! The better you understand the financial elements of your business, the better off you will be in terms of creating a successful and sustainable business.

What they are:

Budgeting (projecting your future revenue and expenses) and cashflow forecasting (analysing cash inflows and outflows by month) are great forward-looking tools, which will help you plan for the future, but also hold your business to account, as you track and measure your success along the way. Forecasting allows you to see hurdles (shortfalls) before they come, and gives you breathing room to deal with the challenges, so you aren’t always on the back foot.

Not quite sure what we are talking about? Let us dig a bit deeper.

How we can help:

Step 1. The Budget.

We strongly believe that each business needs to have a minimum projection of what it anticipates in terms of its trading revenue and expenses.

There are many ways to forecast your income and expenses, from looking at a break-even analysis (what the business needs just to survive), to a high growth model, and these decisions are dependent on a number of factors which we would discuss with you at the time of budget preparation.

Step 2. Linking to your cashflow

As you may already know, looking at your profit and loss isn’t the same as looking at your cash inflows and outflows each month, and that largely comes down to timing. The timing of receipts and payments, tax, purchasing of property plant and equipment, and loan repayments all play a big part in your cashflow management and capabilities.

If you truly want to get a clear picture of your cashflow, and anticipate any shortcomings well in advance, then we recommend you let us help you create a full cashflow forecast, which includes a projected profit and loss, projected Balance Sheet, and Projected Cash Movements.

Step 3. Reporting and Analysis

Having a budget and cashflow forecast will set measurable financial goals for the business, but to really make use of these, they need to be reported on (ideally each month).

As part of our service, we recommend you have monthly financial reports comparing actual results to budget, so its clear how your business is tracking throughout the year, and can make any necessary adjustments to ensure it reaches the financial goals you set for it.

Our services:

• A high level Budget of your Profit and Loss, and expected Net Profit, broken down by month

• We can turn your Budget into a three-way Cashflow Forecast, so you can see the difference between making profit vs. having positive cashflow

• We can look at your ‘business cash cycle’ (reviewing your business cash in’s and out’s over a month) to help you better predict shortfalls

• The above will allow us to predict the tougher months ahead of time, so you can seek the finance support you might need in the short term

• We can predict the revenue your business will need to create to simply break-even

• We can input your Budget into your accounting software for you, so you can track your results

• Monthly, or quarterly management reports, comparing your budgeted vs. actual results for the period

• Monthly, or quarterly meetings with us to go through the management reports and discuss the findings in the reports

• A health check review of both your business profit and loss (performance) as well as its balance sheet (assets to debt, liquidity, solvency etc)

Dependent on your business needs |  Services start from $1,500 +GST