Budgets and forecasts
Everyone in business knows that keeping control over your cash flow is fundamental if you want to survive during uncertain times such as your start-up period, seasonally quiet times or times of expansion.
Good cash flow management is not just about chasing your debts and managing your customers' credit terms. It is also about predicting your future cash needs and ensuring you have the right amount of cash in the right place at the right time.
Good business management is also about making sure you have the right resources to meet your customers' requirements.
All businesses should prepare a financial budget at least annually. It sets out where you want to go financially and is an invaluable management tool as well as a requirement for any loan application.
A financial forecast is your latest expectation of what really will happen over the next few months, based on what is happening in your business now. It is your financial radar.
At Pincott Lee we can prepare or review your budgets and forecasts, advise as to what suitable assumptions might be and help you plan your financial future.