PKF Texas – The Entrepreneur’s Playbook: Business Resolutions – Cash

by | Dec 14, 2007 | PKF Texas - The Entrepreneur's Playbook®

Note: Running most Fridays in FromGregsHead.comis a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on KPRC 950AM. Audio files can be found on the Entrepreneur’s Playbook page of the PKF Texas website.

Every year around this time, people begin to make personal resolutions but have you thought about resolutions for your business?

Plan for cash!

Management’s ability to get a firm grasp on cash inflow and outflow is imperative to a company’s ultimate success or failure.

Two of the best tools to help accomplish this are the preparation of an annual forecast and a zero-based budget.

Traditional budgets start from previous year’s spending and adjust each expense item up or down.

A zero-based budget starts at zero and forces the preparer to justify every expense. You may be surprised how much fat has crept into your expenses as you go through this exercise.

Consider which tool will work best for you and start the year off right!

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