Chapter 6
What’s the Plan, Stan? Budgeting for a Better Bottom Line
IN THIS CHAPTER
Seeing the master budget and its component parts
Appreciating the importance of budgeting
Planning production, sales, and cash
Working costs into the budget process
Assigning responsibility, using a budget as a guide
You need accurate information to make smart decisions about your business. A well-planned budget may be the most important piece of information you use.
Budgeting is a proactive process. It’s the thinking person’s accounting. You anticipate future outcomes and can maximize them. You anticipate problems and may be able to minimize or eliminate them. That’s a lot better than operating in ignorance and reacting to events as they come up.
In this chapter, you look at budgets, consider how to anticipate costs, and work through some essential budget documents.
Brushing Up on Budgeting Basics
As you know, a budget is a financial plan that includes both financial and non-financial information. ...
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