Forecasting Your Company’s Financial Future

Key Topics Covered in This Chapter

  • Essential functions of budgeting
  • Types of budgets and their purposes
  • Creating an operating budget
  • Creating a cash budget
  • Applying sensitivity analysis to budgets

GOOD GRIEF, IT’S BUDGETING time again” is a common refrain among managers. Budgeting can cause stress and conflict and can eat up lots of hours. But good budgets are worth the time and trouble.

If you are the owner or manager of a small company with few cash resources, a good budget can be the difference between financial success and insolvency—or the business’s inability to expand to its full potential. The budgeting process forces you to estimate how many of each product or service you will ...

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