Operational Budget

An operational budget, also known as a pro-forma profit and loss account, is a forecast of your business profits. 

You may ask yourself, am I going to make a profit this year? Well an operational budget can give you great confidence knowing if the business is likely to make a profit.

An operational budget is such an effective tool, not only for those of you looking to get into the industry but also those of you who are established in the market. 

An operational budget allows you to understand what your business can and cant do but also gives you the opportunity to identify costs which could be cut, making the difference from a loss to a profit making business.


Having a concept your passionate about is great but without an operational budget you CANT be certain that your passion will turn into profit. 

We work with you and translate your business ambitions into financial projections. We forecast your sales, identify your variable, semi-variable, fixed, controllable and uncontrollable costs. Now that we have forecasted your income and expenses, you can see if your concept is profitable.

Forecasting and categorising your expenses is important because you will know which costs you can cant control and which ones you can. If your restaurant is not meeting its profit targets then you will know which costs you can control in order to make a profit.

When calculating your expenses, we work out your payroll costs including the cost of employers national insurance & pension contributions, costs which are often overlooked.

Your operational budget will also need to reflect the cost of depreciation. The assets in your business loose value every year, and as accountants we calculate depreciation and include it as a cost in your operational budget.

Understanding how much sales you need to do to stay open is called your break even point. The pro forma profit and loss can be used to calculate this, so you can set your sales targets. 

Get in touch if you are thinking of opening up a restaurant or if you have been in industry for some time and would like a better understanding of the future of your business.