It’s the end of the year and many companies are going through analysis of their 2018 budget as well as forecasting of their 2019 budget. This can be a pretty stressful experience and can encumber many long hours of meetings. Not to fret….
We’ve been there. We’ve lost hours of sleep. There are solutions.
We have found that they best remedy to this stress is proactive and productive conversations throughout the year. One of the successful strategies in finance is to analyze your budget through your Profit and Loss statement monthly as you balance your accounts. We’ve turned this into a very efficient process for ourselves, as well have taught several of our clients.
- Step 1: Balance accounts
- Step 2: Print off Month End Profit and Loss and Balance Sheet
- Step 3: Analyze month-end numbers in correlation to last month, last year, and year over year trends
We do this for our own company every month. Instead of looking at your monthly budget, look at your cyclical nature of your expenses. Average them over the full year and then create your monthly budget. Not every month is created equal.
Analyze your income separate than your expense. Do you have systems in place to look at your revenue streams to counteract your cyclical expenses?
This whole process can be complicated if your expertise is not finance. We are here for you. We can walk you through it and set up templates and procedures to help you as well as your finance leaders. A few hours of pre-planning can overcome weeks of stress.