Budgeting & Cash Forecasting

Addison Accounts & TuitionClaire Rulton, March 2016

Who am I?

202

39

2016

2017

1

What’s Today Going to Cover?

Budgeting & CashflowWhat is it & how its used

Budgeting

- an amount of money available for spending that is based on a plan for how it will be spent.

Q1 What are the different legal structures you can

have?

Sole Trader

Limited Company

No simple answer to which is best

Its Your Budget

Daily, Monthly, Quarterly, Annually – bigger the company the more often, the more detailed

Its Your Budget

£ and penceMillionsThousandsTens of thousands

Its Your Budget

Generally will look the same as a Profit & Loss

Budget £’000Sales 200

COS 90

Gross Profit 110

Expenses 30

Where to Start?Who produces?

A practical example –

Woburn Enterprises Ltd

Woburn Enterprises Ltd

5 Business Areas40 departments

16 Departmental ManagersAssumptions

Cashflow

- is the net amount of cash and cash-equivalents moving into and out of a business

Cash is King

• Solvency

• Timing differences

• Accounting adjustments

Claire Rulton

@addisonaccounts07903 007624