Every new or established business needs a tightly monitored "Monthly Budget" to minimize overhead and maximize "Cash Flow." By using a projected six month to one year spreadsheet in calculating "Cash-out/Cash-in" you will know how much invested capital is required each month to continue in business. These figures will also show an overall view of the company's course and highlight where restructuring is needed.

The "Monthly Budget" with its close watch on expenditures, helps maintain a positive "Cash Flow" to build a continuous rise in net profits. A comprehensive "Monthly Budget" incorporates all known and projected expenses, which are deducted from the gross revenue to reflect "Cash Flow" as well as gains, losses and potential problem areas.

Some areas take more research to define the exact problem and then determine the corrective options. However, most obvious adjustments needed in the company structure may include:

  1. location and rent;
  2. overhead;
  3. inventory or supply expenses;
  4. cost of goods or services sold to profit ratio;
  5. timely collection on accounts receivable;
  6. marketing controls.

Without a "Monthly Budget" and positive "Cash Flow", businesses cannot operate or grow to a profitable level. This partnership of "Monthly Budget" and "Cash Flow" is a valuable business tool used in estimating current status and growth.

To help you formulate a "Monthly Budget And Cash Flow", SCORE, A Resource Partner of the U.S. Small Business Administration, offers free confidential one-on-one business counseling with experienced executives plus a day long monthly Workshop for a nominal fee. For the location, phone number and counseling hours of the office nearest you, call our main Dallas SCORE Office at (214) 987-9491.

Monthly Budget & Cash Flow