Once we are clear that we are going to make the annual budget for the 2018 financial year, we can find different budget models or templates on the Internet, but, in order to monitor the budgets, it is better to use an accounting program that allows us to compare reality with what was budgeted in an automated way .
Regarding budgets, there are 10 things you should know :
They facilitate reflection on the future of the business
To prepare a budget, you need philippines phone lookup to thoroughly analyze the business : how income is generated, the expenses associated with the activity, and the processes necessary for the development of the business activity.
Preparing the “forecast” or sales forecast
The forecast can be the starting point, and we can base it on historical data, assessments by the sales and marketing team or any other indicator that helps us estimate the sales figure as accurately as possible .
Included in the strategic plan
It must be included within the framework of a strategic plan, integrating the different areas, sections or departments that our company has, which will have in the budgets and their monitoring a tool for performance evaluation .
They facilitate internal communication within the company
It is an excellent backbone tool for the company , which forces management to interact with the different parts of the company. At the same time, it facilitates the coordination of activities and helps detect internal problems .
Time horizon of one year
Although they may have a broader horizon, they are usually annual, projecting the financial statements : balance sheet, profit and loss, and cash flow statement .
Adaptation of the internal accounting plan
It may be necessary to make adjustments to the company's accounting plan for its preparation and monitoring, since, for example, in an accounting account we can identify the branches by inserting a number, so that with that digit we can identify all the accounts that correspond to that branch.
Rigid budget or flexible budget
Budgets must be provided with a certain elasticity , since, although it is not advisable to modify them at the first opportunity, if important changes occur that may significantly affect them, both for better and for worse, the company structure must be adjusted as soon as possible and the budgets must be reformulated.