14 Oct One of the most important tools for your business… A Cash Flow Budget
A Cash Flow Budget is like flicking the switch on your business, it helps you to get a clear picture of your business and gives you a roadmap to assist you in planning your year.
The Cash Flow Budget also helps you to map out your actions to achieve your goals. Whether they are to reduce costs, implement a marketing plan, develop a sales strategy, review your products and services, and the list goes on, this one tool is the starting point of your journey to success.
When I first took over managing the accounting firm with my father, we had no clear picture of our business, no forward map of our actual billable fees for the year or estimate of what our annual sales would be. Without this we were practically running our business blind. We also didn’t have an estimate of what our annual outgoings were and therefore no clear picture of what the gap may be between our ingoings and outgoings.
Without this we really were just hoping for the very best, hoping that our incomings were going to be higher than our outgoings.
I know right, an accounting firm with no clear picture for our business! Not a great place to be in.
Do you have a clear financial picture of your business?
Do you know what your estimated sales are going to be and your estimated outgoings?
Do you know if there is a gap you need to fill?
Do you know if there are ways you could reduce your outgoings or increase your inflows?
Once I realised that my dad and I were practically running our business on a hope & prayer, I made changes and fast.
In the coming weeks I will detail for you each step I took to implement a clear cash flow plan so that I could effectively manage our business. This one strategy, I believe, is the reason I was able to turn our firm around, double it in size within a couple of years and sell when the time was right.
If you would like assistance in preparing a Cash Flow budget for your business, a clear plan of your sales goals, a clear picture of your outgoings and the strategies to increase your sales and decrease your expenses then please get in touch. This is my absolute passion and I know firsthand just how important this one tool is in helping you to transform your business.
Dream big and create the life you want to live!
Hi, I’m Phoebe. I love business, especially the Numbers! As a sought-after qualified accountant, I come from a place of experience, with over 15 years of running my own accountancy firm, MGA Accountants, I scaled the business to double the size before successfully selling in 2015. Now I am focussing on what I love, helping female entrepreneurs create business success by understanding their business numbers so they can make smart, savvy business decisions to live the life of their dreams.