As a small business owner do you have a budget for the next twelve months and if not why not? It’s the easiest way to identify costs that are getting out of control so that you can make adjustments before your profit is eaten up.
- It doesn’t have to be complicated. A simple budget is easy to put together and if you have been trading for a while you can use last year’s accounts as a guide.
- By comparing your actual results to your budget as you go along you can quickly identify potential problems and take prompt action.
- Having simple management information such as this will make you feel more in control of your business and will give you confidence when making financial decisions.
- If you need to renegotiate your overdraft with the bank they will be impressed if they see that you have some decent management information.
- The more you study the financial performance of your business the more scope you will see for measuring different aspects of it. In turn this will allow you to manage your business more effectively.
Westbury accountants can advise on all aspects of management accounting including the preparation of budgets and forecasts.
Nicola Pearson – Partner
Westbury Accountants and Business Advisors is an accountancy practice based in London. Westbury have been providing Accounting and Tax solutions to small and medium sized businesses since 1936.Talk to the team at Westbury on 0207 253 7272 or visit http://www.westbury.co.uk.