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The basics of creating a business budget for your company

The Finlay-Mulligan & Co Accountants team believes that a solid business plan can only benefit your company at any point in its development. A company budget is a key to expanding your business plan; it is one of the most important instruments in managing your business finances and actively turning your business into a success.

A business budget essentially outlines how you want to spend your money over the following year.

So, why is it important for your company to have a set business budget for the fiscal year? The Finlay-Mulligan & Co Accountants team has provided some compelling explanations:

  • Forecast sales and expenses according to monthly or quarterly variations.
  • Evaluate performance over time, including changes or patterns.
  • Get really familiar with where your money goes and where it comes from.
  • Clarify targets and goals and use the budget to help you focus and achieve those goals.
  • A budget will help you to see the big picture and stay motivated over the long term.

A simple budget analyses your company’s current income and costs and makes assumptions about how income and anticipated expenditure will be distributed over time. The foundation of your budget is your company’s cash flow in and out.

As you begin to realise the advantages of budgeting, your budget should grow into a more complex form that incorporates non-cash aspects like allowances and depreciation.

If you would like to discuss your business needs. Call Finlay-Mulligan & Co Accountants on (01) 6638700 or email admin@fmco.ie

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