FINANCE Budgets/Forecasts/Cashflow Workshop Jenny

Transcript:FINANCE Budgets/Forecasts/Cashflow Workshop Jenny:
FINANCE Budgets/Forecasts/Cashflow Workshop Jenny Holloway Business Mentor and Coach February 2025 Jenny Holloway – Be Your Own Boss FINANCE INTRODUCTIONS Jenny Holloway – Be Your Own Boss FINANCE Topics: Elements of Financial Management (The things you need to do) Costing Sheets Profit & Loss Cashflow 5. Book-keeping Managing cashflow Funding Jenny Holloway – Be Your Own Boss FINANCE 1. Elements of Financial Management: The things you need to do! a) Product Costings – know how much each product costs b) Recording and reporting what has happened - statutory reporting and Tax - book-keeping c) Forecasting/Budgeting for what is going to happen (P&L and Cashflow) - are you going to make a profit? - making sure you have enough cash - matching your business plans to your finances d) Financial Discipline - Cost control/Pricing/Maintaining Margins Jenny Holloway – Be Your Own Boss FINANCE Elements of Financial Management: a) Product Costings a) Know how much each product is going to cost you when you go into production. b) Check if your pricing is ok compared with your product costs Jenny Holloway – Be Your Own Boss FINANCE Elements of Financial Management: b) Recording and reporting what has happened: i) Statutory reporting and Tax - Sole Trader – annual tax return - Ltd Company – annual accounts Using an accountant: - Prepares and submits annual accs. - Prepares and submits tax returns - Gives tax and financial advice - Can do payroll, VAT, book-keeping etc Jenny Holloway – Be Your Own Boss FINANCE Elements of Financial Management: ii) Monitoring and book-keeping Why monitor what is happening? - stay in control - make sure you are on track - spot problems straight away Why do book-keeping? - monitor income & spending - needed for annual accs & tax - needed for VAT returns Jenny Holloway – Be Your Own Boss FINANCE Elements of Financial Management: c) Forecasting/Budgeting for what is going to happen - why do forecasting? - enables you to measure success - enables you to anticipate cash requirements - enables you to take informed decisions Jenny Holloway – Be Your Own Boss FINANCES Elements of Financial Management: d) Financial Discipline Top Tips: - Know your product costings and pricing in detail, so you know how much margin you are making - Know your budgets. You can be flexible but understand the financial implications of going outside your budget - Get the best