Budgets & Cashflow Projections

Cash is the lifeblood of your business. You need it for day to day operations as well as financing growth such as purchasing new equipment, leasing a larger warehouse etc.

Not having a budget and cash-flow projections can leave you unprepared for seasonal shortfalls in available cash, or not having funds available to take advantage of a one-time-only, deeply discounted price on something you need to run your business. The best time to plan for cash shortfalls is when you don't need the cash. Planning for needs in advance ensures that you know how long in advance you need to request so that you have access to funds when needed. Banks don't hand out funds without vetting you/your business for the ability to pay them back. This takes time. You will need to provide financial statements, cash-flow projections as well as other documents. This should be taken care of well in advance of when you project you will ultimately need the funding. Going to the bank for financing at the last minute could mean that you miss payroll, government remittances, or vendor payments are late, and incurring costly penalties. There are lenders that will lend to you on short notice and with minimal paperwork, but those charge very high fees and interest rates. These can be avoided by being prepared.

We can assist in preparing budgets for the upcoming year. By projecting your costs, you will be in the favorable position of knowing what your sales will have to be to reach your desired profit.