Budgeting
My Business Manager™ Software: Instant Budgeting Insights
Why budget? We generally think of budgeting as a way of deciding in advance how much cashflow we need to afford certain activities: what do I need, and how will I pay for rent? For salaries? For raw materials?
More broadly, good budgeting software provides guidelines for managing future investments and expenses. It is also a statement of the financial position of the firm for a specific period.
The budget is an annual financial plan that provides forecasts and authorises, for each financial year, estimated future costs, revenue and expenditures and their detailed description and justification.
Good budgeting always includes forecasting cashflow: the movement of money into and out of the business that determines its solvency.
The MBM toolbox makes it easy and logical to create a budget you can achieve.
- Import the budget from your accounting system or Excel (if you have one)
- Use actual data from prior periods if you expect "more of the same"
- Update the "top-down" results from your forecast and then add details.
- Once you have a Profit & Loss and Balance Sheet budget, we produce Cashflow forecasts and Forecast KPIs to indicate future directions and results.
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