Budgeting and Forecasting for Your Trades Business

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Budgeting and Forecasting for Your Business

A budget is a financial picture that typically covers a 12-month period. It is used to determine what you can expect for revenues and expenses over the course of the year, factoring in operational activities that you anticipate implementing. Budgeting is a valuable practice that allows you to see a picture of your overall financial health for the year.

Forecasting is similar, but it encompasses a longer time-frame, usually three and up to five years. Looking farther ahead provides the opportunity to plan for different scenarios and to compare the potential impact of different options that you are considering. Forecasting allows you to see into the future of your business and gives you control over the outcome.

Both budgeting and forecasting are important business activities, each providing insight into the state of your financial health and how you can make strategic choices to affect your future and more efficiently achieve your goals.

Budgeting and Forecasting Help for Your Trades Business

If you’re considering a big change to your business, or you want to see how specific projects or adjustments will determine your future financial health, a budget and forecast will provide a roadmap for how to achieve the outcomes you desire.

For example, if you’re considering taking on a big project or bidding on a large contract, a forecast will help you determine what your true capacity is. Analyze your current cash flow and how your successful bid will affect your cashflow as the project gets underway.

A forecast is also helpful in spotting trends, like when your slower and busier periods are, so that you can pursue work at the right time to ensure a healthy balance.

KWB Accountants & Advisors is pleased to offer you the business accounting services you need and the advisory support that will help you thrive. Benefit from a suite of customizable business advisory services and a team that will help you reach your potential and create the business and lifestyle of your dreams.

Book a free consultation to discuss your accounting and advisory needs and goals and to learn how KWB’s ONSight Advisory services can support you.

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