How much additional financing, that is. Many smaller, growing companies can’t say what amount of outside cash will be required to get them through next year.
Can you?
Budgeting & Forecasting
What will be your total revenue next month? What about the third quarter? Or the rest of the year? How do you know that your sales pipeline won’t run dry in the dog days of August? Tracking the numbers will keep the fog out of your crystal ball.
It’s that — budget — time of year again for smaller companies whose fiscal year follows the calendar. So it’s particularly timely for them, and useful for everyone else, to review the basics of the budgeting two-step.
The coming year can’t be any worse than the past year, right? Well, hopefully — but not necessarily. How will you know where you’re going to come out at December 31, 2009? Not by budgeting, but by forecasting. Not by making the tea, but by reading the tea leaves. There’s a big difference.
"Howe's Bayou"