Wanganui Rivercity Press Article
Christine Savage is a Senior Accounting Technician within our business advisory team.
If you have a particular subject you would like Christine to cover in an article contact her on csavage@silks.co.nz or
ring her on 06 345 8539.
It is extremely difficult to accurately forecast what is going to happen in the future.
Just ask the weather man and all the experts who predicted a Big Win for the All Blacks.
Just like the Rugby World Cup the going can get tough in business too but if you hang in there and don’t make any mistakes at crucial stages you will win, or should that be stay in business.
To help the outcome be in your favour it is not only important to know the level of cash in the bank, and what is expected to be received in the month but how this follows on for the rest of the year.
That’s right I’m talking budgets or forecasts for the next year. These should be tracked each month against your actual income and expenses and the variances explained.
Does your forecast need revising due to changing circumstances? Regular reports showing your cash flow and how your business compares to the prior year, original budget and your forecast should be available from your accountant. You may only want to receive these on a two monthly cycle when your GST is completed.
For most businesses we are six months into the financial year and now is a good time to discuss with your accountant how the year is going and review your tax position. Your forecasted profit for the financial year will be required to help with this aspect.
Finally, if you are wanting to borrow funds from the Bank they will insist on not only the historical data, as in Financial Statements for the last year but also current data and future expectations for the business.
Published - 9 November 2011
