ABT Accounting, Bookkeeping & Taxes

You already know this, however, I believe it needs repeating:

Your cash flow is vital to your operation. Your sales have peaks and valleys resulting in peaks and valleys in cash flow.

Cash flow models illustrate these variations allowing you to exercise informed judgement of your spending.

It is easy and quick to create one. The power of this tool is priceless.

Cash flow models incoporate savings, reserves and revenue from all sources; also, expenses from operations, administration, special purchases and every potential expenditure you may expect. These are actual incomes and expenses.
This information is derived from historic trending and an accurate appraisal of your current econmic environment. There is a significant amount of research required but well worth the effort.

Building a budget comes from the actual income and expenses assembled for the cash flow model. This data yields a trend of costs associated with the generation of revenue. These associations are then calculated into percentages. On a go forward basis you have these percentages to utilize to estimate future expenses. With the budget in place, you will be able to see where and how your resources are used.

Again, well worth the effort.