Annual Budget cycle is one of the most important phases of the financial year!
For all large corporations the Annual Budget cycle is one of the most important phases of the financial year.
Our attitude is that if it’s good enough for large corporations, then it is certainly good enough for smaller organisations, and in our opinion it is best practice to prepare an Annual Budget for your business.
In simple terms an Annual Budget is a financial plan for your business for the next financial year, based on best available information and your financial goals.
How it Works
The Preparation Process
The Annual Budget preparation process is a collaborative process involving primary input from the people who know most about the business ... you, the business owner.
Our role is to bring together all the raw data and figures that you provide us with, and to present it in the following integrated format: Profit and Loss Account, Balance Sheet and Cashflow Statement.
Key Indicators of Your Business Performance
Once the final Budget is agreed, this is set in stone, and is not changed.
Then on an ongoing basis throughout the financial year the Actual performance is tracked against Budget performance, and variances are quantified and analysed.
Keeping Things on Track!
This serves the purpose of ‘keeping things on track’ as much as possible, as in the absence of a Budget there is no benchmark to compare Actual performance to.