Budget Planner - Profit & Loss Cash Flow
Highlights for building an annual budget starting in the third year
A. Budget for these years is only a rough estimate.
B. The starting point is the expectation of growth in these years. Whether the company continues to grow at a fast or moderate pace or is at a stable level.
C. If these years are important and the company is undergoing a rapid (growth / decrease) trend, the estimates will be difficult to compare and should be considered adding years on a monthly / quarterly basis.
D. As the following years are expected to be stable and similar in revenue / expenditure for the last specified budget use the annual budget will give a better estimate
E. In many cases, it is appropriate to base the last month in the detailed budget as a basis for estimating annual spending in the years to come.
F. Attention should be paid to the parameters affecting the main revenue and expenditure. And according to them make the estimate.
G. With less substantial expenses, a simple multiplier factor can be determined.
H. It would be unprofessional to put a coefficient of X% without a foundation.Back