Question
In order to make an effective budget for the 2020/2021 financial year, you should consider the following: 1. Review the financial data and cash flow
In order to make an effective budget for the 2020/2021 financial year, you should consider the following:
1. Review the financial data and cash flow trends from the Caf's Business Plan 2019/2020 (in the pictures below). You should carefully analyse the financial data in order to identify any potential risks or opportunities that could impact the Caf's financial performance in 2020/2021.
2. Research any relevant industry and external trends that could have an impact on the Caf's budget. This could include changes in consumer behaviour, industry regulations, economic conditions etc.
3. Establish a budget and allocate funds in accordance with statutory and organisational requirements. This could include reviewing statutory requirements for compliance and liabilities for tax.
4. Consider any specific goals or objectives that the Caf owners may have for the 2020/2021 financial year and plan how the budget could be used to support these.
5. Consider the Caf's financial resources, such as income, expenses and capital. Estimate expected income for the year and plan for expenses such as staff costs, supplies and equipment.
6. Use the budget to create financial bids and estimates for potential projects. This could include bids for catering events, new equipment or services etc.
7. Monitor the budget on a regular basis to ensure that it is working effectively and that it is meeting the Caf's financial goals. Be prepared to make changes or adjustments as necessary.
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