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Finance: Create budgets to predict outcome

Q. Visiting with the accountant, I don’t know what to expect as I look at the monthly financials. Isn’t there a way to eliminate the surprise?

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.