Each performs different functions enabling businesses to make informed decisions based on the data and information provided by them.
Business owners, especially as we look forward to a new financial year, should be forming cash flows and budgets now to allow comparison of performance and planning for the business when 1 July rolls around.
Budgeting provides business owners with greater control. By looking at unfavourable variances for example, you can decide to control waste if costs are too high, increase marketing activity if sales are too low or improve efficiency if production is under par.
Proper budgeting allows you to plan future strategies, set new target, and enhance motivation as everyone works towards achieving these.
At OBT we combine the theory with practical, hands-on project management to ensure you work with your cash flow forecast on a monthly or quarterly basis. By the time 30 June rolls around, you know your position and have prepared well in advance for it.
A local business owner and OBT client said, “In recent times our business has been severely impacted by floods however we have been able to work more closely with OBT on our cash flow and budgeting to look at areas of improvement. Knowing our business is the most important thing – OBT not only knows our business but understands us.”
There are more upsides than downsides to having in place effective cash flow and budget reporting. Imagine what great shape your business could be in this time next year!
Use the new financial year to lock in your cash flow and budget. Then stream the information from both year-round to keep your business on track.
Contact OBT’s friendly team of accountants if you’d like to get your business cash flow and budget organised as a priority.