Budgeted profit and loss accounts and cash flow forecasts were originally developed as a financial management tool, but it is now universally expected that if you are applying for any type of finance or banking facility, you will have prepared a business plan, and part of that plan will include at least a 12 month budget and/or cash flow forecast. The use of budgets and cash flow forecasts can help to keep your business healthy.

How we can help

• We have experience in management accounting and costing in industry, which is particularly pertinent to the production and use of meaningful budgets.
• We can assist you in the production of budgets
• We can assist you in the production of Cash flow forecasts
• We can help you to learn how to use them effectively over their lifetime, so that they serve as full a purpose as possible.

Useful information

Budgets and cash flows are two different items, and serve different functions.
 

• A Budgeted Profit and Loss Account is a prediction of your business’ performance over a future period (usually 12 months), broken down into smaller periods, either monthly or quarterly. It is used for decision making and performance review, and can be amended as the period expires. Once ‘built’, a good budget can be used to look at ‘what if’ scenarios, such as increases and sales, or costs, to try and estimate the impact any changes in circumstances will have on profitability.

• Cash flow forecasts are similar to budgets, but with one major difference. As their title suggests, they are designed to predict and monitor actual cash flowing in and out of the business. This is because businesses often supply goods and services effectively on credit and then have to wait for payment. Similarly, their purchases of supplies may well be on credit, and will not be paid for until some time after delivery. The cash flow therefore tracks actual cash movements, to enable the user to predict periods when cash may be temporarily in short supply, and perhaps a short term overdraft may be needed.  

Our commitment to you

• We will provide you with a cost efficient and professional service.
• We will ensure that our services meet your individual requirements.
• We will inform you of ongoing costs on a regular basis.
• We will regularly review the services and make sure they are still meeting your requirements.
• We will provide you with a timely service.
• We will keep your best interests as our first concern.