The Power of Budgeting

The average business owner has a general sense of why budgeting is important.  Few business owners dedicate time to maintaining and updating the company budget at the appropriate frequency, simply because these “rainmakers” wear several metaphorical hats at once.  The harsh truth is, the vast majority of those who understand how to properly develop budgets and forecasts are in the accounting profession.

If you’ve attempted to handle financial planning, budgeting, forecasting and additional accounting duties in-house, now is the time to lean on the accounting experts for guidance.  Our assistance with budgeting and forecasting will help move your business in the right direction, stay within your financial boundaries, and protect your bottom line.

Budgeting Services for Businesses

Wouldn’t it be nice to receive professional budgeting guidance along with fractional CFO services?  We provide exactly that and more.  Our CFO services’ budgeting component sets expectations for revenues based on financial quarters or your preferred period of time.  This is the planning you need to accurately analyze your company’s current trajectory and progression.

The strategic use of budgeting and forecasting in unison allows for analysis through comparison.  We’ll help your business establish reasonable data-based benchmarks rooted in facts and figures as opposed to gut instinct.  This is the budgeting your company needs for better management and long-term financial success.

The Value of Continuity

If you were to poll experienced entrepreneurs and other business professionals, you would find budgeting is central to continuity.  Businesses fail to function as intended when debts are not paid in full and on time.  Budgeting satisfies the company’s recurring debts.  Budgeting is also helpful in that it serves as a metaphorical runway for potential business expansion.

If you are still on the fence whether budgeting is worth it, consider its importance beyond the next financial quarter.  Budgeting is certainly meaningful for short-term financial planning, yet it also plays a vitally important role in long-term success.  Budgeting is a legitimate tool for prepping an enterprise for a better future characterized by ongoing financial success.

In short, budgeting enhances business stability.  Such planning guarantees there is sufficient capital available for ongoing business operations.  If the planning process reveals a financial shortfall, seize the opportunity to raise or maximize capital, be it through cutting expenses, boosting sales or through outside financing.

If the budgeting process reveals funding is necessary, accept that painful reality and begin planning with help from the experts.  The budget presents the company’s financials, setting the stage for an infusion of outside capital, be it through a lender, creditor, or other party.

Let’s address the alternative of inaction.  Fail to establish a budget, and you’ll forget the opportunity to secure additional capital in a timely manner.  Moreover, planning ahead for your business with budgeting and forecasting facilitates the establishment of financial goals that ameliorate the challenge of raising more capital for continued business operations.

Mind the Cash Flow

Budgeting is especially important for managing the business’s cash flow.  However, you’ll have to estimate the revenue and net profit during specific periods of time to accurately calculate cash flow.

Select the budget time frame, develop a sales estimate, and you’ll have the information necessary to anticipate when sales revenue will be available to the business.  Calculate the business expenses for the same period of time, and you’ll have a better sense whether the business has enough cash available to cover all expenses and continue operations.

Bookkeeping & CFO Solutions 5280

Our budgeting and forecasting specialists are here to help plan your business’s financial future.  Meet with our team, and you’ll be much more likely to turn your vision into a reality.

Reach out to us today at (720) 608-6240 or by email at to find out more about our services and schedule a consultation.