The first November budget in 21 years is being greeted with a huge deal of anticipation, with an unconvincing government and the country seemingly in Brexit ‘no-man’s land’.
Whatever the outcome of today’s announcement (it will doubtless spilt opinion across the nation), it’s a timely reminder that having a look at your company finances and planning for the future (whether it be 6, 12, 18 months or beyond) can help plot a course for the business to be measured against, and provide a reference point in the future.
With ever increasing uncertainty over the state of the home economy, putting some thought into how you expect to progress over the next year can provide the impetus to make it happen. It can even give some comfort that a fall in revenue / increase in costs can be stomached for a period. You may have a very good handle on how your business is performing, so why not lay it out in a budget so you can prove to yourself in 12 months’ time how in control you are? At the same time provide additional comfort to the state of your business.
The budget process need not be complicated and time consuming, it can be as simple as you can make it. Detail the variables that affect your business and combine this with a reasoned view of how the future will trend. If you are looking for rapid growth for example, map it out and see whether it works.
Do remember the golden rule though – (G)arbage (I)n (G)arbage (O)ut. Your forecast will only be as good as the inputs to it – a balanced approach is ideal, although you may want to challenge yourself and be more optimistic, or assess in the light of a downturn in fortunes.
Also remember, your budget doesn’t have to predict with certainty (as I’m sure Philip Hammond will be at pains to say), but it at least gives a focus and direction to your upcoming business activities, and that is a great platform to have.
Do you require help with budgeting? At Foxtrot Twenty we can provide support for short term projects such as budgeting. Get in touch today.
