Did you know that Quinn Consultants experienced Accounting Team can work through your figures with you and help you establish a budget or review your existing budget to assess how you are tracking?
In this 2 hour, one on one, session you will understand the importance of a profit and loss budget and go through the steps of creating a budget for your business.
Purposes of a Profit and Loss Budget for Your Business:
1. Provides a summary of expected income and expenses;
2. Allows to monitor the financial impact of your business decisions and operational plans;
Steps for Preparing a Profit and Loss Budget for Your Business:
1. Understand your business goals and objectives
2. review the business operation for the past 12 months observing all activities (i.e. operating, investing and financing activities)
3. separate activities into the above categories, eg:
a. operating activities: receipts/income/sales; payments of expenses; inventory purchase; creditors and debtors;
b. investing activities: sale/purchase of PPE ( property, plant and equipment) and/or motor vehicles;
c. financing activities: credit card debt facility, owner’s contribution
4. identify and document all assumptions that have been made for the budget period
5. review prior year’s profit & loss statement and balance sheet
6. prepare the profit and loss budget for the selected period using the cash flow worksheet (attached)
The Quinn Group Accounting Team can help you with your budget today. Call us on 02 9223 9166 or submit an online enquiry to arrange a one-on-one session today.
