The primary goal of any establishment that sells liquor
is profit. Taking control of your liquor, beer, and wine inventory is the first step.
To confirm we are making progress in our profit making goals, we need targets and ways to measure the success or failures our business may be encountering. It is for this reason, we create budgets which will allow us to better monitor and take the corrective actions needed to reach our goals.
What is a budget? It a financial plan for a specific period, month, quarter, year...where we try to compare the sales we hope to make versus the costs associated to these sales.
The budget we create will at first be just a plan that details the sales we expect to make, costs and the desired profits. But as we enter the budget period, the budget takes on a new personality; it becomes one of our control tools that help us compare the actual results versus the desired results. The liquor, beer and wine inventory software we choose to collect the data is a crucial tool to assure the accuracy of the data we utilize to compare and reconcile our budget results.
We must realize our budgets will go through certain phases and the set of figures we input can change as our business environment evolves. In the first phase, we project the financial future in detail and make sales realistic forecasts, but changes do occur and we may be obliged to review our budgets as we enter our specific period.
In the last phase of the budget, we compare the data and we are then in a position to analyze areas that require more attention or maybe modify the budget initially created as our goals are either unattainable or the "bar" has been placed too low.