As a small business looking to grow, controlling costs and forecasting<\/p>\n
revenue is a very important practice. Watching your bottom line and reining<\/p>\n
in your spending by creating a budget is a key element of cash flow management.<\/p>\n
A budget is a detailed statement of expected revenue and expenses. It should<\/p>\n
include revenue from product sales, services, accounts receivable, and any<\/p>\n
other revenue sources. Expenses will include costs such as rent, office<\/p>\n
supplies, payroll, inventory, insurance, and other things that businesses<\/p>\n
spend money on.<\/p>\n
Budgets typically are based on fiscal years and then broken down by month or<\/p>\n
quarter.<\/p>\n
<\/p>\n
Forecasting future sales is a critical part of creating a budget.<\/p>\n
Forecasting revenue is typically based on past performance and insight into<\/p>\n
future revenue opportunities. If you track leads, opportunities, and pipelines<\/p>\n
in a CRM tool, the CRM tool can provide very valuable metrics to help you<\/p>\n
develop your forecasting.<\/p>\n
<\/p>\n
If your business is new and with a little history, then you can perform your<\/p>\n
own research and base your forecasting on similar businesses.<\/p>\n
[widget id=”custom_html-25″]<\/b><\/p>\nBudget and Forecasting in Versa Cloud ERP<\/h2>\n
<\/p>\n
Versa Cloud ERP allows you to create budgets for your expense<\/p>\n
accounts,\u00a0 and forecasting revenue for your income accounts. Let’s take a<\/p>\n
look at how it works.<\/p>\n
[widget id=”custom_html-22″]<\/b><\/p>\n
Businesses generally budget and forecast in specific periods. Versa<\/p>\n
Cloud ERP supports period types such as monthly, quarterly, and yearly.<\/p>\n
You first choose the fiscal period (typically a fiscal year) and then choose<\/p>\n
your budget periods: by month, by quarter, or by year. Then you select the<\/p>\n
general ledger accounts to include in your budget. After the account is<\/p>\n
selected, you enter the actual budget\/forecast amount for each period\/s. If<\/p>\n
your budget is monthly, then you would enter a number for each month in the<\/p>\n
fiscal year. Repeat this process until you have selected all the general<\/p>\n
ledger accounts you want to track.<\/p>\n
<\/p>\n
Most people create budgets and forecasts in a spreadsheet and would prefer<\/p>\n
to create the initial numbers in spreadsheets. Versa Cloud ERP allows<\/p>\n
users to download a spreadsheet as a template for inputting budgets and<\/p>\n
forecasts. You can do all your number-crunching in a spreadsheet and then<\/p>\n
upload the same file to Versa.<\/p>\n
<\/p>\n
After all the numbers are loaded into the system, Versa gives a real-time report of actual vs budget\/forecast. You can see up to date expenses and<\/p>\n
revenue numbers and compare that to your budget and forecast. As it is<\/p>\n
common to all Versa Cloud ERP reports, you can drill down from the<\/p>\n
report into transactions details to see what you are spending on, and what<\/p>\n
makes up your revenue numbers.<\/p>\n
<\/p>\n
It is also important to periodically review your budget and forecasts to<\/p>\n
make realistic adjustments based on performance to date.<\/p>\n
<\/p>\n
With this tool on hand, Versa Cloud ERP helps businesses watch their<\/p>\n
bottom line and top line. Because Versa runs in the cloud, your real-time budget and forecast vs actual information can be shared with your team<\/p>\n
anywhere,\u00a0 anytime on any device. Isn’t that a beautiful thing?<\/p>\n
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