One method for determining changes in assets and liabilities for the coming year and for planning where to get the additional capital for the higher level of assets in the coming year is to use a formal and comprehensive budget system. As you probably know, budgeting systems are time-consuming and somewhat costlyalthough for management planning and control purposes the time and money may be well spent. Many businesses, even some fairly large ones, do not use budgeting systems. But, they still have to plan for the impending capital needs to support the growth of the business. (more…)
