The financial plan
The financial plan should relate to the business plan and should list the key financial objectives which are essential for your business to achieve.

Budgeting and forecasting
Budgeting and forecasting is very important for the small business owner. Knowing how much money can be spent and on what is the most important thing for a small business to stay afloat.

Record-keeping
Running a business requires good record keeping.

Break-even
A business reaches breakeven when its income exactly equals its expenses, resulting in $0 net profit.

Ratio analysis
Ratio analysis is an effective way to understand the financial performance of a business. It involves calculating and analysing a series of financial ratios based on financial statements.

Variance analysis
Variance analysis is the practice of reviewing the difference or variance between actual financial performance and budget/forecast figures.

The finance module of the Small Business Tool Kit contains further information plus case studies, quizzes and interactive financial planning tools.