We keep our advisory services at the level that can best serve our clients. We specialize in small to medium sized entrepreneurial businesses and therefore our conversations stay focused on speaking clearly to non-accountant professional business owners. We speak your language.
A budget is a financial plan that will identify the goals and objectives of your business. It is designed to create a picture of your desired results and will become a significant factor in your businesses financial success. By building a reasonable budget and then staying on track, you will better be able to manage your cash flow cycles.
You will use the information from the budget to:
- Evaluate performance against financial goals and objectives by creating a benchmark against which to measure
- Assist with decision-making regarding the allocation of financial resources
Common financial budgets for business
- Operating budgets – prepared on an annual basis to provide structure for the company as a whole and its various departments
- Project budgets – designed to monitor a budget for a specific project throughout the entire life of the project
- Capital budgets – prepared to assist with the identification of a company’s capital needs, and then to assess and plan to meet the long term goals and objectives. A capital expenditure may include items such as equipment, furniture, fixtures, software to name only a few.
A forecast is a projection of your expected results within the next one-year period. It is created to predict expected results. We create a business forecast using historical data to make financial projections in the long run.
You will use the information from the forecast to:
- Make intelligent and informed decisions
- Assist you in identifying unexpected issues thus allowing you to take corrective actions in a timely manner
- Identify and capitalize on potential opportunities
Cash Flow Management
Monitoring your cash flow is essential to the success of your business. While earning high levels of revenue is the goal of a company, it is cash flow that determines whether or not a business can meet its financial obligations during the normal course of day-to day business operations. Our most successful clients have us prepare a cash flow statement on a routine basis, depending on their individual business needs.
We teach you cash flow basics, such as:
- Cutting costs – only spend on what you need and reassess regularly to ensure that the costs remain reasonable. Suppliers often up their prices regularly and it’s easy to lose sight
- Pay your bills on time – don’t fall behind with suppliers, employees
- Figure out your breakeven point.
- Build a cash reserve – a good rule of thumb is to have in reserve the value of 4 month’s expenses
- Always be finding a way to generate new revenue
- Invoice as soon as possible – get paid up front if possible; collect as soon as possible to ensure no overdue accounts and perhaps offer discounts for early payment
- Have a good daily bookkeeping system in place to have an accurate sense of your position at all times.
All successful ideas begin with a plan!
A business plan can be interpreted as the first brush of your masterpiece. That is why AZ Accounting Firm develops a business plan that will indicate to investors how well thought out is your approach to success. AZ Accounting Firm has assisted hundreds of successful clients build a solid plan to the future. We understand what you need because, like you, we are entrepreneurs also.