The Status Quo Budget
Apr 20, 2016
Setting a budget and having a cash flow forecast is only the beginning. The status quo budget is another part of your business numbers that you have to be familiar with.
Your business position can change throughout the year and be influenced by many factors. Monitoring these changes is important.
A status quo budget is achieved when the average efficiency is the same, year after year, after taking into consideration the parameters that the banks set on the major variables such as the dairy payout and interest rates.
What relevance does the status quo budget have on your business?
The banks use a client’s status quo position to assess a client’s strengths and weaknesses. This helps to accurately evaluate the business without the seasonal highs and lows.
Your business position can change throughout the year and be influenced by many factors. Monitoring these changes is important.
A status quo budget is achieved when the average efficiency is the same, year after year, after taking into consideration the parameters that the banks set on the major variables such as the dairy payout and interest rates.
What relevance does the status quo budget have on your business?
The banks use a client’s status quo position to assess a client’s strengths and weaknesses. This helps to accurately evaluate the business without the seasonal highs and lows.