If not, do not automatically assume that either you or your bill is correct, but investigate the cause of the discrepancy. A cash book lets you know what you have spent on each group of farm items, so that you can compare the cost of an alternative. For example, if you know the costs of your machinery breakdowns you can compare those with the cost of hiring a contractor for some jobs. Cash flow budgeting and control Budget to assess your ability to finance your operations and your normal cash commitments. The budget allows you to see how your plans affect future profitability.
All budgets are forecasts and hence, are subject to uncertainty.
As circumstances change, update your budget. A cash flow budget only records cash flowing into and out of your business. It only establishes a cash surplus or deficit and does not account for changes in assets and liabilities. Records to compare enterprises Take care when comparing enterprises. It is only relevant to compare non-complementary enterprises that use the same limiting resources.