Tag: Budgeting
Finance: Create budgets to predict outcome
April 23, 2012Tom Shay
A. In a word: budget. Every business should be working with 12 budgets which represent the next 12 months. The monthly budget is your prediction of what that month's income statement is going to look like. Row by row, you are estimating what the numbers will be. You begin with your revenue; estimate your gross margin and every expense.The accuracy of the budget is determined by your ability to utilize your previous income statements as guidance. Let's use April as an example. Now is a great time...
