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budgets & forecasts

“The use of budgets and cash flow forecasts can keep your business healthy”



What are budgets & forecasts?

  • A Budgeted Profit and Loss Account is a prediction of your business’ performance over a future period (usually 12 months), broken down into smaller periods, either monthly or quarterly. It is used for decision making and performance review, and can be amended as the period expires.
  • Cash flow forecasts are similar to budgets, but with one major difference - they are designed to predict and monitor actual cash flowing in and out of the business. Similarly, their purchases of supplies may well be on credit, and will not be paid for until some time after delivery. The cash flow therefore tracks actual cash movements, to enable the user to predict periods when cash may be temporarily in short supply.

Budgeted profit and loss accounts and cash flow forecasts were originally developed as a financial management tool, but it is now expected that if you are applying for any type of finance or banking facility, you will have prepared a business plan, and part of that plan will include at least a 12 month budget and/or cash flow forecast.

How can we help you?

  • We have vast experience in management accounting and costing in industry, which is essential in the production and use of meaningful budgets.
  • We can assist you in the production of budgets
  • We can assist you in the production of Cash flow forecasts
  • We can help you to learn how to use them effectively over their lifetime, so that they serve as full a purpose as possible.

get in touch - 01434 601133 -