Module 3: Budget Builder
This Budget Builder module builds on Module 1: Financial Foundations and Module 2: Key Financial Ratios to build a projected annual and monthly budget for your business.
"Budget building", is a key skill required to setting and tracking income goals, forecasting financials for lenders and assessing opportunities and investments related to scaling up. The budget is based on projected sales & expenses for the following categories identified in your chart of accounts (COA):
- Income Accounts
- Cost of Goods Sold Accounts
- Fixed Expenses
- General and Administration Expenses
- Operating Expenses
Learning Objectives for Module 3:
- Comptency in using information from your P&L statement to project expenses;
- Understanding of which projected expenses are fixed, % of sale or another factor;
- An Understanding of How to Use a Budget to Set and Track Income Goals;
- Ability to develop an Annual and Monthly Projected Budget;
- Capacity to Develop Standard Operating Procuedures (SOP) to Compare Monthly Projected Budget with your Actual Budget.
Upon completing Modules 1 - 3, you should be able to accomplish the following tasks for your business:
- Clean-up your chart of accounts (COA);
- Update/Add Income Accounts;
- Update Action Plan for Sales Projections;
- Create a annual 2023 budget;
- Create a monthly 2023 budget;
- Create a five year budget (2023-2028);
- Setup a weekly, monthly and annual financial routine;
- Get Setup to Work with a Book Keeper;
- Get Setup in QB.