Common Sense Profits, LLC

Budgeting & Projections

Budgets are spending plans. These plans should align with your business’ goals and objectives for both the current and upcoming year.

There are a combination of approaches you can utilize when constructing a budget. You can use historical data, variance analysis, and standard deviations to characterize last year’s budget. That allows you to establish a starting point for the next budget. You can identify business operation and growth goals during the next budget; along with identifying the corresponding cost estimates. This approach allows you to establish lower and upper boundaries for spending.

If your business is new, then the focus is on goals, objectives, and corresponding cost estimates. As the year unfolds, adjustments can be made to account for any feedback based on variances and current spending patterns.

We can also assist your business with developing revenue, profit, and cash projections for investors, creditors, or for internal management.