Budgeting
for a Rainy Day
Ensuring that the foundation of a successful business is in place
If your business is currently being run without the guidance of a proper budget, you may find that you are actually running around in circles. That way, you are so caught up in the day-to-day issues that you have no time to focus on the big picture or long-term business goals. If you take the time now to set and sustain a budget, not only will you free yourself from constant guesswork, but will also give yourself the best chance of profiting from your efforts.
How our Process works
Over the years, while helping scores of businesses like yours, we have developed a system that help us help clients manage, monitor and make the most of their budgets.
While the details may vary depending on the specific needs and nature of your business, the overall process works as follows:
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We schedule a kick-off meeting where we discuss and understand your short- and long-term goals as well as the key success metrics you want to achieve
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We then gather the required information – typically the business plan & objectives, identification of available capital, estimation of expenditure and anticipated incoming revenue
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We help you create a minimum-viable budget plan for a period of 1 year.
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Please Note: Depending on the maturity and readiness of your business, this can also take the form of a 2- or 5-year outlook.
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We outline a plan for weekly monitoring and management of cash flow
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This includes an itemized report of where funds went and where they will go
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The objective is to apply intelligence to cash flow decisions to help you make better business decisions!
Ideally, budgeting should be an integral part of your cash flow management process. Most budgets work very well in theory, while they fumble and fail during implementation. Our expertise lies I helping you create a budget that works both in theory and in practice!
A Genuine Challenge
Nearly every business owner starts a new business with a whole lot of enthusiasm and optimism. That’s often a pre-requisite for success. But actually, running a business comes with its fair share of day-to-day problem. The minutiae of operations, the stress of deadlines, the pressures of logistics and delivery – all of these can come together and cloud the bigger picture. Before they realize it, business owners are scrambling to contain costs and ensure consistent cash flow to keep the business afloat.
While good intentions and optimism go a long way in business, the one thing that differentiates a successful business from a failed one is budgeting. Successful businesses not only allocate time to create a proper budget, but also spend time and effort in monitoring their financial situation so that they can modify and course-correct business plans in time to ensure successful business performance.
How your business benefits?
One should never underestimate the importance of proper budgeting when running a business:
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Efficient budgeting not only estimates revenue and plans expenditure but also restricts your team from spending that is not part of your plan
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Budgeting ensures that available money is allocated only to those items that support the strategic aspects of the business
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Having a budget in places communicates to everyone in your organization what the priorities of the business are
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The process of creating and sticking to a budget involves your team and helps them relate to the vision of the organization
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Effective monitoring of the budget and provide timely insights into the trajectory of your business and can help your team make the right business decisions
Ready to empower your business for success?
Sonder Accounting’s team of experts is here to help you resolve all your budgeting issues and help empower your business. Whether it is a short-term outlook or a longer-term view, we ensure that your budget removes the inefficiencies in your spending and drives your business towards profitability.
To know more and to kickstart this process today, we urge you to schedule a call with us.