The Book Monitor can help you prepare budgets for your business so that you can compare how your business is performing against your anticipated performance and ensure you are not overspending.
Forecasts can be put together by The Book Monitor to help with decision making, by producing "what if" scenarios in order to establish how trying something new may affect your business financially.
Cashflow statements can also be prepared by The Book Monitor in order to determine whether your business has sufficient funds to pay your creditors or to undertake new projects. Cashflow isn't just about looking to see how much money is in your bank account, it also considers such things as how much money you are still owed by customers and how much money you owe to your suppliers.
Frequently Asked Questions:
Q: What is a budget?
A: A budget is put together at the beginning of your financial year to establish how much income you think you are going to make and how much money you think you are going to spend on running you business, thereby giving an estimation of your expected profit for the year.
Q: What is a forecast?
A: A forecast is similar to a budget, in that it is an estimate of how much income and expenditure you think you are going to have in a set period. However, unlike a budget, a forecast can be adjusted throughout the period in question, based on actual trading figures for the month(s) already passed. This means that you can then make adjustments in trading for the months still remaining in the period to allow for any differences that have occurred between your expected income/costs versus your actual income/costs in the months that have already passed. This, in turn, will help you to achieve, or even exceed, the expected results for the year.