My Business Manager Software: Instant Budgeting InsightsIan McManus
Why budget? We generally think of budgeting as a way of deciding in advance how much cashflow we need to afford certain activities: what do I need, and how will I pay for rent? For salaries? For raw materials? This is where my business manager software will help.
More broadly, good budgeting software provides guidelines for managing future investments and expenses. It is also a statement of the financial position of the firm for a specific period.
The budget is an annual financial plan that provides forecasts and authorises, for each financial year, estimated future costs, revenue and expenditures and their detailed description and justification.
Good budgeting always includes forecasting cashflow: the movement of money into and out of the business that determines its solvency.
The toolbox makes it easy and logical to create a budget you can achieve.
My Business Manager software will show you this data on the Business Snapshot report. Increasing the number of customer or transactions means adjusting your marketing mix, or discounting your products and services. There are complex factors to be considered when trying to grow with this method.
• Import the budget from your accounting system or Excel (if you have one)
• Use actual data from prior periods if you expect “more of the same”
• Update the “top-down” results from your forecast and then add details.
• Once you have a Profit & Loss and Balance Sheet budget, we produce Cashflow forecasts and Forecast KPIs to indicate future directions and results.