Cash Flow & Budgeting

To be successful, a company must have positive cash flow. BBS’s cash flow and budgeting services helps you to have a clear understanding of your cash – where it has gone, what you will need, when you will need it and how to improve it. We will give you a clear picture of your overall cash position and we will create possible budgets and forecasts to show you various scenarios based upon different decisions to allow you to choose the best course of action to improve your overall profitability.

cash flow & Budgeting

Our Cash Flow and Budgeting services assist your company answer critical business questions:

  • What are your most profitable products and/or services?

  • Do you really know where your money is going and why it is going where it is?

  • What does it cost you to operate your business each day?

  • When you have a change in your costs or a vendor price increases how much more do you need to sell to cover that increased cost and remain at the same level of profitability?

If you’re like many businesses, you do not have a forecast, projection or budget. However, to maximize your success and improve your cash flow, you need to know where and when your money is coming and going

  • It is critical to keep your eye on cash, not just recorded profits.

  • If your business does not generate positive cash flow, you cannot stay in business for very long

  • It is important to find ways to get the cash owed to you as quickly as possible and to not just get a promise to pay – remember receivables represent a promise to pay.

BBS will show you how budgeting can grow increase your cash and profits. The budgeting process is not just a yearly chore, but a useful tool. Learning how to properly interpret the numbers is key and we will teach you what to look for and the questions to ask when reviewing your budget vs. your actual results. In this way your budget allows you to better manage cash flow and build your business.

Our Cash Flow and Budgeting service includes the following components:

Projected Monthly Cash Flows

This is a key part of the budgeting process and allows you to consider all the sources and uses of cash for your business. It takes into consideration any loan payments and any planned capital expenditures. Your company’s cash flow projections are of great importance to you and your banker. It allows you to predict when you may have surplus cash and when you may need extra operating funds. It helps you predict when you can pay back loans and why you may need to borrow. It helps you to plan payments and to manage collections from customers.

Budgeted Profit & Loss Statement for the year, on a monthly basis.

It is always a good thing to know where you are and where you are going. Your budgeted profit and loss statements allow you to track your progress against actual result to see if you are heading in the right direction or if you need to make changes in your pricing, operations, or marketing. You can plan the company’s monthly sales goals and provide expense budgets for each expense category you track in your general ledger.

Gross Margin Plan at the total annual planned sales level

By understanding your gross margins you can better set pricing commensurate with your costs and provide your sales department with goals for sales for each product and each sales person to ensure adequate profitability. Your gross margin can be planned at the class, category, department, division, and corporate level and is used to see what each part of your business is contributing to the overall profits of your company. The gross margin data is then used in the preparation of your budgeted profit and loss statements.