|
Expert Answers - Small Business Financial Management Basics
|
|
All small businesses have something in common: a need to fully understand financial aspects such as budgets, cash flow, pricing and balance sheets. Otherwise, entrepreneurs may not fully understand what's happening with their business until it's too late.
Lou Davenport, a SCORE mentor for over 14 years, has helped hundreds of small business owners develop basic financial management skills that lead to success. Read his advice on how you can master your numbers.
| |
| |
|
A: Typically, small business budgets are planned for one year, while long-term financial planning should be done for up to three years. SCORE offers some great Excel spreadsheet templates with built-in formulas that can help you prepare pro forma forecasts for up to three years.
Once you learn how to use what-if scenarios, you can better analyze, track and compare business results. You can then use first-year projections as your budget, tracking things as you go along.
|
| |