Budgeting (18)

Early warning system

Are you going to be in control of your new business? Will you know in advance about any looming cashflow problems? Unless you make use of properly prepared budgets, the answer is probably going to be no.

Budgeting sets out the financial targets for your business. It helps you anticipate problems and compare what has actually happened with what you expected.

This briefing explains:

• How to budget for the sales and costs you expect.
• How to forecast your cashflow.
• How to compare actual sales and costs to budget, and keep budgets up to date.