Budget & Monitoring
We, as an outsourced CFO team for your business, can aid in creating a financial plan that acts as a guide for your existing enterprise or a new project. Our team possesses extensive knowledge in developing financial projections and planning for companies of various sizes. By establishing a budget, you can measure your cash flow and assess your actual performance in comparison to your yearly goals. Therefore, it's crucial to monitor the budget periodically. If the business fails to achieve its targets, the budget can help to analyze and determine if changes can be made to a specific part of the business.
Understanding the financial numbers can drive the strategic direction of a company. These include:
identifying the articles that contribute the most to the total revenue,
determining which client segments to prioritize or avoid,
deciding which hires to make more frequently,
identifying the largest monthly expenses, and
determining how to approach pricing decisions and financing expansion.
Although budgets are typically prepared annually, they can be reviewed quarterly or semi-annually, depending on the business's size. This enables the creation of a rolling budget (each quarter is updated for the upcoming one year).