Budget analysis, planning and Forecasting

 We offer advice and support for Budget analysis and planning to the clients, our experts examine and amylase the components of budget expenditure and revenue. The use of budget indicators (ratios) helps the business to improve understanding of issues such as the level of implementation of expenditure and revenue budgets or the structure of the budget. Cash flow forecasts are necessary to measure your business's health and progress. 

We also do management accounting and cash flow projections, The aim is to integrate data structures and processes that generate management information, focusing on cost reduction and identification of non-performing units.

We focus on the following:

  • Preparation of costs and cash outflow projections
  • Revenue and cash inflow projections
  • Variance analysis
  • Products costing
  • Inventory controls
  • etc.

Effective budgeting and planning are a keys determinant of company’s success. The work plan details the activities, time frame and resources required for implementation.

Those are our main support but not limited:

  • To prepare monthly and annual budget through allocating resources where it is much needed.
  • To track budget variances and provide clear justification for those variances.
  • To control budget at the end of the period by comparing it to the actual results.
  • To come up with necessary actions for future improvements.
  • To adjust/revise budget where it is necessary trough allocating funds from one program/project/activity to another.
  • Budget monitoring and control, this involves matching and comparing cumulative expenditure to the budget as per the approved budget line items. Budget monitoring should be done at the end of every month.

During Analyzing and classifying a Budget we focus on the following: 

  • To identify areas of overspending. When analyzing your budget look for areas where you have overspent.
  • To find Areas where there is extra money. Look for areas where there is no spending as much as you have budgeted each month.
  • Check to see if we are reaching financial goals.
  • To classify costs as total, average or marginal, and define each one of them. Use data from the reading note and illustrate the computation of each cost type. Costs can also be classified as fixed or variable, according to how they change with the volume of output.

A budget should convert the effects of all activities into a common denominator to facilitate the development of an integrated plan. It becomes the basis for utilizing available resources.

Successful implementation of budgetary controls requires that the business complied with its internal controls.

P&L Budget Reports are considered budget analysis tools and are used by the clients to review the final budget at a summary level. Key functionality in this type of management report will compare the budget versus actual (BvA) year-to-date numbers plus the forecast for the rest of the year.