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The Importance of Budgeting

Does your organization produce budgets and track progress? Below, we discuss why budgeting is important. Year-end is a great time to make the resolution to create comprehensive budgets for the new year so you can better track results against expectations.

Why Budget & Forecast?

If you are only forecasting revenue but not budgeting expenses, you only have half the picture. By doing both, you can anticipate potential cash flow crunches and make plans to manage through them, such as applying for a business line of credit. In fact, budgets and forecasts can help you qualify for funding by demonstrating your company’s potential to investors and lenders.

Budgets and forecasts also are excellent management tools. They can help your staff understand goals and be accountable for staying on budget and reaching revenue milestones.

Budgets and forecasts are essential if you are thinking of developing a new product line. By comparing expected revenues to costs, you will quickly get a feel for the feasibility of your venture, as well as identifying capital requirements.

Budgeting Options

Sage ERP MAS 90 and 200 General Ledger Version 4.0 and above contains enhanced budgeting tools to help you create a basic budget. If you prefer to use Microsoft Excel for budgeting, F9 software allows you to read and write budget information between Excel spreadsheets and the General Ledger module. If you need a tool with more flexibility and power, Sage Active Planner is available as a stand-alone budgeting tool.

Call us to discuss the best budgeting tool for your organization.

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