Small Business Budgeting Services

Our budgeting process reviews your current financial performance and develops your initial strategy and identifies any potential problems that may threaten your fiscal future. 

When we work together, we’ll start with your business plan (or help you create one if you don’t have one!) to work out what you business is trying to achieve and how it operates. A big picture roadmap based on your business plan and then break it down into achievable steps to develop short term goals. 

Using those short term goals, we’ll create KPIs to track growth in turnover, profit growth, asset purchases and staff expansion. We then use these figures, plus your historical figures and relevant percentage calculations to draw up a profit budget and a cash flow budget. 

So your plan could look similar to this hypothetical business:

1. From discussing your plans for the future we know that your business has a 12 month KPI to increase sales by 30%
2. We look at historical figures and work out that your new sales happen in only nine months of the year not twelve months (December, January & June are pretty dead months for winning new clients in this fictitious business)
3. So we know that to hit this budget we need to actually increase sales by 40% in the nine months where you are likely to win new clients to hit an annual target of 30% – so we now have our monthly Sales KPIs for the monthly budget (in fact you can often be far more detailed than this in what months are best/worst for your particular business)
4. By identifying your fixed versus variable costs we map out the business costs that would occur if you hit your new targets and when they would occur
5. And now we have a month by month budget showing what you need to achieve each month of the year in order to achieve your annual targets

For your business, we’ll look at all the variables and review how they continually change on an ongoing basis. But don’t worry – we won’t do this manually!

We’ll use the latest and most appropriate bookkeeping software for your industry to setup and correctly help you forecast your cash position over time.