Cash Flow and Your Budget
Having cash flow problems? Not knowing your numbers? Not knowing your profit and loss? There is one solution that can help you gain better control - Budget!
Okay, so you have just purchased your business or have a small business and you know your sales income but when it comes to bookkeeping or (more importantly) budgeting you skills are lacking? Well I've got good news for you, it isn't really that hard!
Budgeting is all about estimating and matching expenses to revenue. If you don't have this, then how are you supposed to know if your business adventures are paying off for you? The revenue you create pays the expenses that you need for your business to run.
To put it simply:
High Expenses + Low Revenue = Losses - No Profit
Matched Expenses + Matched Revenue = Break Even
Low Expenses + High Revenue = High Profit
Not Knowing your numbers = Not knowing your business