Budgets and Forecasts are always included in a company's business plan and allow potential investors or lenders to see what your business will look like in two or three years' time, and are largely the sole piece of information to deciding whether you get a yes or no answer.They can also be extended to show how much extra profit you would make if you increased your sales (turnover) by say 10%, while increasing your overheads by only 5%.

In the same way that you wouldn't embark on a long journey without a plan of how to get there, budgets and forecasts are important tools that allow you to manage and monitor your company's progress and ensure you stay on track.

Whether you're starting a business for the first time, or an established company, when used in conjunction with management accounts you have a powerful combination to manage your business and improve performance.