Ph: 02 9121 6205
Budgeting & Forecasting
Establishing and maintaining a process to ensure that your budget and forecasts are performed correctly will ensure that you have a correct visual of your business, setting you and your business up for success.
A robust budgeting and forecasting process should include three-way reporting to include:
1. Balance sheet
2. Profit and loss
3. Cash flow
Each of the above give you a different view of the business but are all require to run efficiently and effectively.
Ph: 02 9121 6205
Budgeting & Forecasting
Establishing and maintaining a process to ensure that your budgeting and forecasting is performed correctly will ensure that you have a correct visual of your business, setting you and your business up for success.
A robust budgeting and forecasting process should include three-way reporting to include:
1. Balance sheet
2. Profit and loss
3. Cash flow
Combined, three-way budgeting and forecasting provides a robust view across your business to give you the confidence to execute your desired strategies to grow your business.
Why is budgeting & forecasting so important to your business?
It is no longer sufficient to know where you have been financially. To effectively lead and grow the organisation it is necessary to know what financial challenges lay ahead. Engaging a part-time CFO may assist in your budgeting and forecasting in the interim or part-time in the long term.
Robust budgeting and forecasting are important to provide you clarity as to how the business is performing and insights as to what actions can be pro-actively taken.
Most organisations will have an annual budget for the next financial year. Whilst this is important as it is the translation of the strategic plan and business plan into anticipated financial achievement, after a few months the budget feels unrealistic, out of date and frequently starts gathering dust.
There is increasingly a sense of financial blindness as to where the organisation is going. The budgeting and forecasting process each month allows you to report and monitor on current activities and to incorporate the latest activities to provide clarity on where you are going and what it will take to get there.
A dedicated and highly experienced CFO will be assigned to work inside your business with you to develop a business plan. The business plan will be deigned to take into account your organic and acquisition growth plans for the coming year that is meshed with a budget and cash flow forecast so you have certainty on how you are getting there. Once designed, your dedicated part-time CFO can and push the plans through the business to ensure the management team understand their accountabilities and targets to achieve the plan.
Our approach is centred on delivering practical cost effective solutions that help improve our client’s financial management, strategic alignment and ultimately profitability. We have proven results with current and previous clients of increasing multipliers for investment, securing capital, loans for growth and paying back loans within 12 months whilst continuing to grow the business. Our team of part-time CFOs are highly experienced, CPA qualified and have all led ASX listed companies from a CFO or CEO function.
Contact CFO Evolve today if you think a part-time CFO or virtual CFO can help your business develop and maintain budgeting and forecasting processes.
