Failing to plan, is planning to fail.
A well-planned budget process will facilitate a thorough rethink of your income cycles and cost processes. You might be surprised at what inefficiencies hide in your costs!
As such, I am a fan of zero-based budgeting. If you use “last year plus 5%”, no analysis will occur, and any hidden inefficiencies will just roll over to the new year.
Points to ponder:
- Do your budgets align with your management accounts and cash flow reporting?
- Have your business drivers in terms of income and expenses, been properly defined and modelled to ease the budget and forecast process?
- Are you managing your business with the budget in mind?
Many people view the budgeting process as overly burdensome but, change the focus so that it becomes a planning and opportunity analysis tool! It will add value to your business.
Let us assist you with your budgeting.
Contact us for a consultation at firstname.lastname@example.org or 021 879 3100