A budget is simply a financial plan for what you expect to happen.
It might estimate:
sales
wages
rent
business expenses
loan repayments
equipment purchases
expected profit.
A forecast takes the information you have today and helps you look ahead.
Neither one predicts the future perfectly.
Their value is in helping you prepare for it.
Why Does It Matter?
Without some form of financial plan, business owners can find themselves making important decisions without knowing what the financial impact may be.
A budget or forecast can help you consider questions such as:
Can I afford another employee?
What happens if sales fall?
How much revenue do I need to cover my costs?
Can I afford new equipment?
When might cash become tight?
What happens if I open another location?
How much profit could the business make this year?
How SKC Accounting Can Help
Depending on what you're trying to achieve, we can help you with:
annual budgets
cash-flow forecasts
revenue and expense forecasts
budget versus actual comparisons
scenario planning
reviewing assumptions
updating forecasts as circumstances change
explaining what the forecast means for your business.
The goal isn't to create an impressive spreadsheet.
The goal is to give you something useful for making decisions.
Common Questions
Can't find your question? Email us.
My business is unpredictable. Is budgeting still useful?
Yes.
The budget doesn't need to be perfect. In fact, considering different possibilities can be particularly useful when a business is uncertain.
What happens if the actual result is different from the budget?
That's normal.
Comparing what actually happened with what you expected can help you understand what's changing in the business.
Continue Learning
How Do I Build a Realistic Business Budget?
What Is a Cash-Flow Forecast — and How Do I Build One?
What Is Break-Even — and How Much Do I Need to Sell Before I Start Making Money?
Service Delivery Disclosure
SKC Accounting Financial & Advisory Services Pty Ltd trading as SKC Accounting is a licensee of Platinum Accounting Australia Pty Ltd (Platinum). Platinum is a Registered Tax Agent (Tax Agent No. 24683431). Tax agent services, including the preparation, review and lodgement of tax returns, and BAS/GST services requiring registered-agent authority, are provided through Platinum under the applicable engagement arrangements. For more information, please visit Platinum Accounting Australia.
Let’s Talk About Your Business
A useful first conversation starts with what your business does, what is creating pressure and what you would like to improve. Book a Complimentary Initial Consultation to discuss the support that may suit your circumstances.