The “Business Equation” is a tool to help you produce a budget for your business and predicted profit or loss based on the figures you put in.
 
We suggest you get a coffee and pull together all the costs and income associated with your business. We have included the most common categories in the equation for guidance and a ‘miscellaneous’ as a catch all for any other costs associated with your business.
 
The tool can be used for budgeting, producing a business plan or adding in actual figures to calculate the current profit or loss for your business.
 
We have also included a cash flow projector which is automatically calculated from the figures you supply. Please remember the cash flow equation is illustrative only, your business will have different times you pay for things like rent and rates and income is rarely even month on month.
 
The point of the cash flow is to demonstrate that although your business may make a profit over the whole year at any one point in that year you may be running a deficit and need a cash injection or overdraft to keep trading. Unfortunately, many businesses fail because they run out of cash.
 
If you would like more help with any aspect of your Business Equation or wish to customise it to the specifics of your business please contact Paul or Massimo to see how Garrod Beckett can work with you to help you manage your business finances.
 
Please note:
 
All calculations are based on a 12 months trading period.
 
The numbers in the monthly cash flow projection are calculated to the nearest £ or €, therefore there may be small rounding differences within the equation, where numbers don’t quite add up.

 

Click here to access the Business Equation

 
 

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