|Beth VadeBonCoeur, |
A budget is a detailed statement of expected revenue and expenses. It can help management to identify their plans for the next financial year and allows them to see the impact of their plans on their financial statement. The budgeting process should be started a few months before your new fiscal year starts. Management should start with actual numbers from the current year and adjust them for changes that are anticipated in the next fiscal year.
Developing good budgeting skills can help you:
- Forecast future revenues and expenses
- Identify opportunities for cost cutting
- Ensure you have enough cash flow to cover upcoming expenses
- Determine a break-even point
- Identify opportunities to be more efficient and productive
This article originally appeared in Modern Memorialization, Trigard Memorials' weekly electronic newsletter featuring information for the funeral industry. Sign up for your free subscription at http://www.trigard.com/thursdays.