Which budgeting method is best?

It depends on your business, your data and what you want the budget to do. We'll talk you through the options and recommend what fits.

What’s the difference between budgeting and forecasting?

A budget sets the targets you’re aiming for over the year, like revenue, costs and profit. A forecast shows where you’re actually heading, based on what’s happening now, and it’s updated as things change. Used together, they show you early when you’re drifting from the agreed plan, so you've got time to do something about it.

Do you help after the budget is set?

Yes. Tracking performance against the plan through the year is where most of the value comes from.

How far ahead should we forecast cash flow?

Most businesses benefit from a rolling 13-week cash flow forecast for the near term, with a longer monthly view for planning further ahead. We’ll recommend what suits your business, depending on your sector, your business model, how tight cash is and how quickly things change.

Can you help us prepare a cash flow forecast for the bank?

Yes. We regularly prepare cash flow forecasts for banks and lenders, and we can help you walk them through it, including the assumptions behind the numbers.

Planning that takes you where you want to go

Budgeting, forecasting and business planning, grounded in your goals and your market.

There are plenty of ways to approach budgeting and forecasting, but the most important step comes before any of them: agreeing where you want the business to head.

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Direction first, then the numbers

Budgets can be built in a number of ways. Some work bottom-up from each team or site, others start top-down from an overall target. Some use previous averages, others adjust last year's figures up or down by a percentage. Each has its place, and we'll help you choose the approach that suits your business.

But whichever method you use, a budget without a clear direction is really just a forecast of more of the same. So we will always start with the conversation about where you want to be, and build the numbers from there.

What a good plan includes

Financial targets.

Revenue, margins, costs and profit, broken down in a way that makes sense for how your business runs.

Operating targets.

The non-financial measures that drive the numbers, like customer numbers, headcount, sites, utilisation or average order value. These are often what your team can influence most directly.

Market and competitor analysis.

A plan is only as good as the assumptions behind it. Navigate's fractional CFO-led team look at what's happening in your market and with your competitors, so your targets are ambitious but grounded.

A rolling cash flow forecast.

Profit and cash aren't the same thing. GST, loan repayments, capital spend and payment terms all move cash without showing up in your profit and loss. A rolling forecast shows where your cash will be, and when, so a shortfall spotted months out is a planning conversation rather than a crisis.

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We can help most if...

your budget is mostly last year's numbers with a percentage added.

your team isn't sure which targets they're working towards.

the plan gets written once a year and is rarely opened again (and the reporting isn't helping).

the business is profitable, but cash always seems to feel tight.

If you're current budgeting isn't where you want it, let's talk about where you'd like the business to head. We'd love to hear from you and work out where we can help your business.

Let's talk

How we work

We plan it with you, not for you

Our business planning services don’t stop at handing over a spreadsheet. We work through the plan with you and your leadership team, and once it’s agreed, we track actual performance against it throughout the year. That way, the plan remains useful and easy to adjust as things change, and we update your cash flow forecast as the actual numbers come in.

FREQUENTLY ASKED QUESTIONS

Here's what our clients have to say about our budgeting, forecasting and planning...

Navigate are more than just a virtual CFO to our business - it's a true partnership. Their cash flow forecasting and detailed reporting [amongst other services] gives us the confidence and clarity we need to focus on our continued growth.

Kelly Orsmond

Chief Operations Officer - Moustache Republic

Let's put some direction behind the numbers

Thinking about the year ahead? We'd be happy to talk through where you want to take the business.

Or call us on +61 2 8080 2102 or email us at info@navcfo.com