Result And Cash Flow Budgets
By conducting a budget of results, you can get a better idea of what generates profitability in your business. This way you can estimate how much you must sell in order to cover your costs and still generate a profit.
A thing to keep in mind is that regardless of whether you have drawn up a budget of results and expects to make a profit, the incomes and expenditures can still be uneven during the year. Therefore, it is useful to establish a cash flow forecast parallel to the budget of results. This in order to enable a better economic planning of your company's cash flow and to ensure your solvency.
At MOORE, you will find resources for preparing both budgets of results and cash flow forecasts.