BUDGETS
Corporate budget and strategic financial planning
What is it for?
A Budget is a financial tool that allows performing the financial planning of the corporate operation, with the purpose of improving costs and expenses efficiency, as well as estimating future profits that can be generated in a specific time horizon.
The Budget is the basis of the cash flow, which shows how is the cash-equivalent’s being generated and how is it being expended in a specific time period; with the purpose of structuring an optimal schedule to realize investments, manage debt, doing a corporative re-organization, analyze liquidity and solvency, amongst others.
What kind of budgets do we offer?
- Project execution budgets
- Sales budgets
- Costing models
- Enterprise budgets
- Consolidated budgets
How is it modeled?
The first piece of necessary information for the construction of the financial model is analized.
Then, the statement of income is projected (income, costs, expenses, debt, among others) generally in a 5-year basis, through the financial structure analysis and macroeconomic indicators. These projections are adjusted according to the business strategy.
Based on these projections, the cash flow is built modifying different items that show cash inflows and outflows.
Negative effects of not having a budget
When operating without a budget, there will be uncertainty about the company’s profitability, that is to say, money destinated to the company’s operation (costs, payroll, suppliers, fixed costs, financial expenses, among others) could be misdistributed incurring into superfluous expenses.
Thus, derivating in cash flow problems, which could lead in debt mismanagement, and in turn, liquidity and insolvency problems.
Why Quae Solutions?
