Financial forecasts are, quite simply, your forecast of how your business will perform financially over, say, the year ahead.
A break-even analysis identifies the point at which your business starts to make a profit. You can work out the break-even point using any timescale, eg weekly, monthly, yearly, etc.
Although accountants define costs in several different ways, there are, effectively, just two types of cost.
It is important to know how sensitive your forecast is to changes.
An introduction to budgeting and the types of budgeting you can employ.
The preparation of budgets requires the collection of data to justify the projected expenditure.
Everyone in business plans to make a profit, but how do you know if you are making a profit?
The cash book is where you record all movements of cash, that is, all payments by the business and all receipts to the business.
Purchase ledgers are used to record all suppliers' invoices; to show those which are still unpaid; and to allow VAT to be accounted for.