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Budgeting – Your Roadmap to Profitability

Wednesday, 30th September, 2015

Our experience shows that few owner managers and company directors of Irish SMEs understand the value of budgeting as a management tool or, if they do, they consider it too difficult and impractical.

We beg to differ. Those owner managers and company directors often change their minds once we show them how their business can improve profitability through budgeting.

Budgeting is about planning and understanding your business. The more you plan, the more familiar you become with your business and the better you are at running it. Sounds simple, right? Think of budgeting as a roadmap that guides you from point A to point B and helps you get back on track if you get lost.

  • To facilitate budgeting, quarterly or monthly management accounts are an important financial reporting tool.
  • Here is how budgeting using management accounts can provide you with a roadmap to profitability:
  • You compare actual versus budgeted performance;
  • You can investigate any variances in actual versus budgeted performance;
  • You can take corrective action to swiftly resolve any deviations in performance;
  • You can project revenue and plan expenses in order to effectively manage cash flow;
  • You can see exactly where you are spending money and look at ways to reduce the cost of running your business;
  • It facilitates effective business planning and informed decision making through the availability of up-to-date, timely financial information.

If you don’t have the expertise or resources in-house to produce quarterly or monthly management accounts or prepare a budget, please get in touch with DBASS today to see how we can help to steer your company to profitability. Call us on 01 849 8800.

 

Image courtesy of phanlop88 at FreeDigitalPhotos.net

Dublin Office Suite 14, The Cubes Office, Beacon South Quarter, Sandyford, Dublin 18.
Meath Office Berkeley House,
Ballybin Road, Ashbourne,
Co. Meath.

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