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Three Important Budgets
Basically, you need three budgets when starting a business:Establishing Budget
In order to estimate how much money you need before the start-up of the business, you must work out an establishing budget.
The establishing budget provides an overview of necessary expenses incurring up until business start. It is not until after start you will be able to gain an income.
- Go to Establishing Budget
Operating Budget
The operating budget provides an overview of the costs of running your business.
The operating budget gives you an overview of the company´s day-to-day
expenses. It also gives a chance to calculate an estimated turnover.
When all the expenses for a year are added together and subtracted from the
income, you will get the profit and loss statement. The profit in the company is
your ´salary´. Profit is what you can take out of the company for personal
use.
- Go to
Operating Budget
Cash flow Budget
In order to figure out your need of cash at the end of each month you have to
work out a cash flow budget.
A cash flow budget is a chronological overview of expected income and expences
over a given period of time – often a month.
- Go to
Cash Flow Budget
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Copyright © 2009 Dynamic Business Plan 06-09-2010
Related answers:
 | Budgeting |
| Calculate your turnover and sale |
| Cash Flow Budget |
| Establishing Budget |
| Example of an Operating Budget |
| Operating Budget |
| Other Budgets |
| Three Important Budgets |
