No matter how small your business may be, your budgets and the way you track progress could make the difference between business success and business failure. Our accountants in Stockport and Manchester provide you with valuable information that you can use to plan a successful year ahead – and we’re happy to consult with you on the budgeting process if you need help.
It’s not just an exercise – it’s a plan
Money is what keeps your business ticking over: money that comes in, and money that goes out. Even if you’re planning to ring the changes in the new financial year, last year’s financials give you valuable information. Using your data while factoring any changes you expect allows you to build a realistic financial plan for the upcoming year.
Why monthly management accounts give you the edge
Not everybody tracks their progress from month to month, but most businesses experience busy and quiet seasons. Quiet seasons can be stressful if you haven’t planned for them, so if seasonality affects your business, dividing budgets into proportionate slices can help you.
You also need to look at when expenses happen and when sales happen. If you’re in a manufacturing business, you may find that most of your expenses fall just when you can least afford them: in the run-up to your peak season. Once again, budget planning can bridge the gap.
Budgeting is an ongoing process
All too many businesses don’t track and revise budgets in the face of current evidence. That’s because they’re just not looking at the figures. If you’d like expert help with interpreting your management accounts, our Stockport and Manchester accountants are here to save you time and provide specialist opinions. It’s like having extra expertise on your management team!
Sometimes, the unexpected happens, and you need to revise your budgets. If you don’t, you may be sure you won’t make the profit you were planning to, and in a worst case scenario, it could be the end of your business.
The bottom line
If you don’t have information, you can’t make decisions. If you don’t have budgets, profitability is a game of hit and miss. Your management accounts provide you with the data you need. Talk to our accountants in Manchester, or get accounting help through our offices in Stockport. Get in touch.