Budgeting & Financial Analysis
A budget is a necessity in a good business plan. It allows you to set financial targets and measure your performance. Budgets are a great way to assist in goal setting in a business’ overall business strategy.
The majority of businesses that I encounter do sometimes have some sort of a budget or forecast in place however the focus is usually on sales only and sometimes a profit and loss forecast without looking at the business’ cash flow and other balance sheet requirements. There is usually limited analysis of expected margins, overheads, cash flow, working capital requirements, funding arrangements, debtor collection, stock / inventory, debt repayments, equipment purchases and GST / BAS, superannuation and PAYG obligations.
I can assist your business in putting together detailed budgets through extensive
financial analysis on past data as well as looking at the business’ future. The
analysis completed will allow you, the business owner, to consider future
scenarios and provide you with KPIs and goals to strive for within your business.
As well as assisting you in completing your business’ budgets, I will also work
with you in tracking your actual performance against your budget goals to
ensure that your business stays on target.
Let me work with you in improving your current budgets through the following business and financial analysis:
- Understanding how your business works.
- Who are your customers and suppliers.
- What are your trading terms and credit policies.
- Do you import and / or export? How long does it take to receive your goods?
- Analysing historical data for trends.
- Determine current working capital requirements as well as future requirements.
- Understand the business' GST / BAS, payroll and debt repayment requirements.
- Discuss and determine the business' future and expected sales.
- Understand the business' asset requirements (equipment purchases and so on).
- Analyse the industry and competitors for any trends.
- Provide and discuss a summary of any positive and negative findings.
- Show management the effects of different changes within the business.
- Work with management in completing forecasts - including the setup of profit centres and cost centres.
- Set and communicate KPIs and goals within each department.
- Provide ongoing monitoring of budgets, KPIs and goals.
- Use these budgets to control resources, motivate management, evaluate staff performance and provide visibility into business performance.