Running a business using management accounts
alone has been described as trying to drive
a car by looking only in the rearview mirror!
To plan properly, you also need the forward-looking
profit and cash flow projections.
|
Monthly
or quarterly profit and cash flow projections
allow business owners to direct their businesses
with more confidence. Early projections
that reveal greater than expected year-end
profits allow ample time to implement shrewd
tax planning opportunities, while a projected
dip in cash flow will allow time to negotiate
with the bank for temporary cash from a
position of strength.
|
| Different
products or departments can also be split
out and their projected profits (or losses!)
highlighted, allowing any necessary evasive
action to be properly planned and implemented
in good time.
|
Profit
and cash flow projections help business owners
enjoy a 'no surprises' business culture
-- think of the small fee as a worthwhile
investment in your stress reduction! |
