A New Year and a time to consider projections
The first month of a year is a time when people make their personal New Year resolutions. But how many people think about business resolutions? One decision that can assist many businesses going forward is to consider projections/budgets for the forthcoming trading year. Now is a great time to think about this as many businesses have either December or March year ends.
If you can project what your figures are going to look like, this then allows you to go forward with confidence and make decisions on areas including:
- Tax liabilities – paying or planning to mitigate
- Marketing – how much to spend and what needs done to gain or retain business
- Capital expenditure – financing the replacement or new expenditure required
- Staffing – are there enough staff to complete the projected work? It can take time to get the right people into your business.
With bookkeeping now into a new phase with cloud accounting at the fore, measuring your actual results against projections/budgets has never been easier or quicker to do. Then you can react to the results of this exercise, whether they are positive or adverse.
Profit and loss account projections can allow cash flow projection to be implemented too and we would always recommend a Balance sheet projection as well.
If you wish us to assist you with how to set up your projections then please do not hesitate to contact us.
Photo by Carlos Muza on Unsplash
