Accountants Can Help You With

What Accountants Help You With
Accountants can help you in these areas:

  1. Budgeting
  2. Cash Flow
  3. Costs
  4. Financing
  5. Factoring
  6. Financial Planning
  7. Internal Control
  8. Audit
  9. Businesss Valuations
  10. Due Diligence
  11. Feasibility Study
  12. Annual Reports

1. Budgeting

a) What is a Budget?
You may need your accountant to assist you prepare budgets for your business.
A budget is a plan to:
  1. Ensure you have enough money for activities in the future.
  2. To control and monitor all the finances of the business, including its income and expenses.
  3. To enable information to be extracted so the business can make decisions as to direction and growth.
The budget enables the owner of the business to rely on accurate figures that would otherwise have been based around guesswork alone.  At any time, the owner should not confuse a budget with a forecast.

b) What good Budgeting does
Budgeting is really a means that enables your business to express its goals in financial terms.  It is a future estimate of your performance, as well as your income, expenses, profitability and details of other transactions.
Good budgeting will encourage you to be forward thinking.  It also enables a framework to be built to mirror the operations of your business.  It sets down incentives and standards by which your business is operated.
Your budget will highlight areas, enabling better decision-making.  It also enables better control over your business by comparing its actual performance with a pre-determined plan.
The whole budgeting process therefore involves realistic forecasting, monitoring and planning.  It requires estimates to be calculated, based on future events, taking into account the information available at the time.
There are many different types of budget. 
They include the following:
  1. A sales or revenue budget.
  2. A purchases budget.
  3. A stock or inventory budget.
  4. An expenses budget.
  5. A profit budget.
  6. A cash budget.
  7. Break-even budget.
  8. Capital funds budget.

c)  Advantages of Budgeting
The main aim of any business should be to achieve high profitability. 
The advantages of budgeting are:
  • Provides vital information about the future financial condition of the business.
  • Helps to identify areas where the business may need correction.
  • Provides the basis for determining how much cash is required to run the business.
  • Helps to co-ordinate the business operation so they are all focused on achieving the one objective.
  • Helps with decision making by pointing out the consequences of any planned course of action.
  • Improves the overall chances of the business succeeding.