Does your business budget? This is how Smart It can help:
Most people realise the importance of establishing and sticking to a household budget. This is the best way to make sure that household expenditures don’t exceed income during the month, forcing families and individuals to have to borrow money or use credit cards in order to make ends meet.
The same principles apply to managing business finances. It’s critical that executives work together with other key members of the management team to create a business budget that defines the company’s basic financial structure and how cash will be managed to work within this structure. Business budgeting helps reduce the uncertainty that often accompanies expense and cash flow forecasting, providing executives with a fiscal framework for all of the company’s financial decisions.
Benefits of Budgeting
Taking the time to create a business budget may offer many potential benefits to your company, including these four:
- You can predict when cash shortfalls may occur, enabling you to plan in advance whether you will need to secure financing, tap into a line of credit or make adjustments to your payables schedule.
- You can plan large expenditures more strategically, rather than being caught unprepared when these needs arise.
- You can reduce interest expense by planning financing needs well in advance.
- You will have a better handle on your cash flow, which will increase your overall financial control.
Smart It’s budgeting module lets you track your budget against the actual numbers. A chart shows the numbers in an easy to read way. The chart also shows trends using an exponential moving average line and a regression line.
To find out more on Smart It’s budgeting module contact one of our consultants for assistance.