If you want to succeed in anything, you must plan in advance. If you don't plan, you are gambling on luck.

Three major effects

four benefits

The boss must first understand the bottom line of the company's capital preservation.

The boss also needs to look for the possibility of realizing profits.

Finance is the key to opening up all the lifeblood of the company. Every business operation of the company is completed through finance.

Budget is the control of results and process

Step 1: Clear goals

Step 2: Find the path

Step 3: Prepare resources

business budget

Capital budget

Financial budget

The starting point of business budget-profit

An important reference indicator for business budget - turnover

Deduced various costs and expenses

Form a budgeted profit and loss statement

Budget amount upper limit = target turnover - fixed expenses - direct costs - target profit

Looking at functions horizontally

View time vertically

During the discussion, the boss should be the final decision-maker and lead the way forward.

Breakeven sales point = fixed cost/gross profit

Poly sales volume = (fixed cost target profit)/gross profit

Inventory turnover days: the time from product entry to delivery

Number of days in accounts receivable: the time from when the product is shipped to when the money is collected

Number of days in accounts payable: the time from receipt of goods into warehouse to payment of goods

Funding gap = annual revenue/number of fund turnover

Number of fund turnover = 365/number of days of fund turnover

Days of capital turnover = days of inventory turnover Days of accounts receivable - days of accounts payable

JD.com, Gome, and Suning have very low capital turnover days, and their companies have grown rapidly.

If cost accounting is unclear, business budgets and sales budgets will be inaccurate

Step One: Contribution Analysis

Step 2: Prepare an expense budget table

Step 3: Prepare a simulated income statement

Set up a budget team

Hold the first mobilization meeting

Find out the focus of operations and decompose annual goals

Cost control and performance indicator determination

Set up reward system