subject: Budget Reports Your Business Needs [print this page] Its often so easy to spend more money than what you actually have available. Having an up-to-date expense budget report allows you to see how much you can allocate for expenditure, in the process that would work best for the final result being a larger profit margin.
Budgeted Income Statement reports are important, as they allow you to understand why your company is like it is. How certain variations may have particular results. The control that you can maintain over what you are wanting sales to be and correct managing of expenditure is shown in this report. This shows you how all targets can be met, and very importantly, maintained.
A budgeted cash flow report is vital. This allows you to see where changes in month to month expenses can possibly be cut down. This would usually be created with unforeseeables in mind, so should an emergency of sorts occur, you are covered and have budgeted for this potential event. This shows you what cash is available, or what you would like to be available, at any given time.
A budgeted balance sheet report is a breakdown of what you will earn or will need to spend in order to keep the company afloat. A balance sheet shows an overview of your company and it is a very quick way to glance over your company and get a fairly good understanding of your current position.
An Inventory budget report will tell you what you have, or would need to hold in stock at any particular time. Inventory budgeting can be very tricky to do right. For precision, many times the market needs to be read and understood, to allow for valuation. Depending on your type of business, there may be areas that are very grey and only once a project has started, could you see the what you are needing. Inventory budgeting, however, is still a vital part of your overall budget process as this determines the basis of what your expenditure needs to be to make sales targets.
A Sales Budget Report is your goal. You have completed all your other budget reports, but ultimately, the more sales you make, the more money you make. It is pointless spending a lot of money, only to undervalue your product and sell at a loss, so you really need to be sure that there is a balance from one report to the next.
