Why bother about budgeting and financial planning?

Budgeting and financial planning mean aligning your finances with your purpose, vision and objectives.


Take control of your finances before they take control of you

Budgeting is about financial planning and money. How to get it, how to spend it and how to keep getting more, is one of the biggest issues facing most businesses and non-profit organisations.

These tools are especially important when they are trying to grow to meet the needs of their customers and their community.

For those looking to improve budgeting and financial planning, there are many tools, processes and templates to turn your visions, objectives and strategies into budgets and forecasts. Replace uncontrollable finance with continuous planning, daily, weekly, monthly.

Some might say they are too small to worry about budgeting and financial planning, or that the future is too unpredictable to worry about it. Wee, let me assure you they will be the losers of tomorrow.

Financial budgets need to cover

  • How much money you need to start the organisation or various projects.
  • Profit and Loss – projected over the next one to two years.
  • Cash flow – projected cash in and out on a monthly basis.
  • Balance Sheet – start-up and projected.
  • Momentum Budget – what will happen over five years.
  • Breakeven point – what is needed to cover all your costs?
  • Financial Analysis – key ratios.


“A budget is telling your money where to go instead of wondering where it went”.  Dave Ramsey


Financial Planning is concerned with how your organisation will handle

  • Cash flow management, daily, weekly, monthly.
  • Monitoring key numbers and ratios.
  • Maintaining adequate working capital.
  • Raising funds.
  • Breakeven analysis.
  • Debtors control.
  • Creditors control.
  • Inventory control.
  • Capital expenditure control.
  • Financial Reporting.

It is important to control the things that will impact on income and cash flow.

Investigate using dashboards to improve the way you drive your finances and your business 


Plan to cover the risks associated with your organisation

  • Inability to finance growth, or customer needs.
  • Dependence on a single person, product or customer.
  • You are not Investor Ready.
  • No management succession plan in place.
  • Debt / Equity Ratios.
  • Have you identified the risks and insured against them, fire, theft, loss of cash.


[read more=”Personal Experience” less=”Personal Experience”]

Personal Experience

Over the years I have prepared many budgets and done financial planning for many individuals and organisations of all shapes and sizes, The one common outcome that I enjoy is the look on people’s faces when the see and understand the final budget or plan.

The lights go on as if for the very first time. I know many of their

Your peace of mind with fewer worries and pain points have been removed and they can look forward to having less sleepless nights. At least the sleepless nights will be for positive reasons.




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