A good business budget allows you to plan for business events that will affect your business’s performance over the forecast period.
Foresee how events impact on your business performance
Events including loss of a major customer or the end of a contract, the employment of additional staff, to name a few, are all impacting your business’s performance. Quantifying these impacts by including them in your budget provides you with a clearer picture of the year ahead.
Plan for growth
Growing your business and making more sales and profit is great, but without allowing and budgeting for the funds necessary for additional staff, inventory or capital expenditure necessary to support the growth, you may find yourself in cash flow squeeze.
Keeps you and your staff on track
Allows you to compare your actual business performance against your desired business performance and easily areas of substantial variances between the two. This allows you to take action to address any areas of concern that arise.