Developing a Financial Plan
Most companies have four main financial objectives: profitability, liquidity, efficiency and stability. Establishing a financial plan that incorporates each of these objectives into a businesses decision-making process helps keep a business on track. Many experienced entrepreneurs stress the importance of keeping on top of the financial management of a company. In the competitive environment in which most companies exist, it is simply not good enough to shoot from the hip when making financial decisions. BEGIN has the knowledge and experience to help you develop the financial plan that will suit your company's needs.
Financial Statements and Cash Flow
Historical financial statements reflect past performance and are usually prepared on a quarterly and annual basis. Pro forma financial statements are projections for future periods based on forecasts and a typically completed for two to three years in the future. The most important historical and pro forma financial statements include the income statement, the balance statement, and the statement of cash flows. Forecasts are predictions of a company's future sales, expenses, income, and capital expenditures. A well-developed set of financial statements are not only valuable for accounting purposes, but helps a firm create accurate forecasts and budget.
Selecting an Accountant
Many entrepreneurs do most of their own accounting, and utilize one of the popular accounting software packages like QuickBooks. As a business grows and becomes more complex, it is often prudent to retain the services of a professional accountant. BEGIN can help you find an accountant that is familiar with startup issues and a good fit for your business.
Managing Cash Flow
New firms must manage their cash carefully to remain viable. Even if a company is profitable, it is often a challenge to keep enough money in the bank to meet routine obligations. To do so, a company must keep a close watch on accounts receivable and inventories. Additionally, as a company grows, it requires an increasing amount of cash to service its customers. Often, equipment must be purchased and new employees hired and trained before the increased customer base generates additional income. The Begin team can assist you with creating the right plan to manage your cash flow.