About Flex Budgeting in Accounting

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In a business, cash flow can go down at times, so it's important to use flexible budgeting when doing accounting for a business. Keep cash preserved during a financial crisis with help from a registered financial consultant in this free video on money management and personal finance.

Part of the Video Series: Money Management
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Video Transcript

This is financial adviser Patrick Munro talking about flex budgeting in the world of accounting. Many times, accounting takes place at a business or even a personal level, and in this day and time of financial crisis, you have all best plans set aside when some crisis comes upon you. In your business, cash flow may be down, things of that nature. So, your plan cannot be rigid, rather it must be flexible. So, make sure that cash is king; you keep as much cash on a sideline for an emergency fund as possible. In my earlier talks about credit, I always say to spend as much as you possibly can to keep your credit down, but if crisis comes upon you, you have to be flexible in order to keep your cash preserved, so be prepared to pay the minimum amount on your payments to get by the crisis, or of course, take different credit lines that are available and shift the burden over to the lower interest rate so that you can constantly keep your ship afloat. This requires flexibility and this is called flex budgeting in accounting. This is financial adviser Patrick Munro talking about flex budgeting in accounting.


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