A new report has been launched by Elevate Financial Training in a bid to support new and existing business owners to understand the importance of a cash budget for business success. The team behind the report explain smart financial plans that are realistic and consider the complex elements of running a business are essential.
Find out more at https://www.elevatefinancialtraining.com/resources
The newly launched report highlights the fact that business owners need to understand how money flows through their business so they can future-proof their company and plan for both best and worst-case scenarios in financial terms.
They add that while many business owners and finance officers create budgets that look good on paper, they do not always consider how money moves through their business. The Elevate Financial Training team explains that businesses can use their cash budget to see how profitable they are.
For instance, a budget or calculations that look good on paper may not reflect the true financial situation explains the report. It adds that if money is moving within the business on a different schedule to what is expected, this can cause businesses to face shortfalls throughout the year.
To illustrate this point, the report details a common issue whereby some customers may pay every 60 days while bills may be due every 30 days. Knowing when cash is coming in and going out is crucial for budget planning and cash flow mapping.
Accounts payable and accounts receivable can be affected by these plans, which is why business owners and finance professionals can benefit from thinking about their long-term goals. The team explains that when business owners have long-term goals, they can set achievable targets.
A spokesperson said: “Forecasting should not be left to chance – it is an especially important exercise for any business. As many business owners will understand, sales performance can vary greatly from month to month.”
“As growth and changes within the business occur, you can act on your role as an advisor by helping your client manage their cash budget and prepare for any short-term borrowing needs,” they added.
Interested parties are invited to visit the link provided. Alternatively, more details can be viewed at https://www.elevatefinancialtraining.com.
Release ID: 88989455