Budgeting and Forecasting
Budgeting and forecasting are tools that assist us in meeting our financial goals. Companies can use budgeting to establish a plan regarding what the company expects to achieve for a specific period. Financial forecasting assists a company in establishing future outcomes based on historical data and trends as well as estimated sales.
Although the creation and implementation of a comprehensive budget and forecast for your business or personal finances can seem overwhelming, it is the most effective way to set financial expectations and achieve success in your financial affairs.
Budgeting
A budget:
- Provides a benchmark for the business;
- Is often required for finance applications and
- Can be used as an indicator of future cash-flow of the business.
However, due to time constraints or other reasons, business owners may overlook these essential reports. We can assist businesses in drafting monthly/quarterly/annual budgets and also provide reports that compare the budget with actual results.
By recognising areas where the actual results vary from the budget, businesses can identify underperforming components and put strategies in place to improve or mitigate the effects of the underperformance.
Cashflow Forecasting
It is important to understand that a business’ profit does not necessarily equate to its cashflow. Factors such as debtors, creditors, accruals, prepayments, depreciation and other non-cash transactions can result in these figures being quiet different. By understanding and forecasting a business’ cashflow we can:
- Identify how much cash will be available at specific points throughout the year;
- Analyse the timing and effects of major outgoings;
- Identify minimum monthly incomings required to cover off on regular expenditure etc.
At Dazz Management we assist in producing these reports and we work with businesses to identify areas of potential improvement and provide cashflow strategies the business can implement going forward.
Financial Statements
Management Accounts – our focus at Dazz Management is to assist our clients in growing their businesses. An important part of this process is the continual monitoring of financial performance. Management accounts, whether they be monthly or quarterly, provide businesses with this information. Our team of experienced professionals work with clients and produce reports that identify and analyse:
- Accounting profit
- Comparison with prior periods
- Comparisons with budget (if applicable)
- Profitability trends
- Risk areas
- KPI performance
These reports are accompanied with detailed comments recognising where the business has gone well and where it needs to improve. By meeting to discuss these results on a regular basis or team can provide a service that ensures your business is meeting its full potential.
- Develop and monitor comprehensive budgets
- Cash flow forecasting
- Monitor and analyse financial statements
