Does your company have a budget vs actual set up to be reviewed every month and at year end? If you do, have you been reviewing it and what has been the out come so far this year?
If you don't -- you need to have a budget vs actual in place and you need to be reviewing it every month with the key people in your company or organization. Several months prior to year end, you need to work on the budget for the next year with input from all department heads.
Looking at historical data and anticipating expenses and revenues for the upcoming year based on projects that your company has in the works and in the pipeline is critical for your company's survival.
Companies that don't have budgets vs actuals are working without any idea of what to anticipate and face too many unknowns.
Your company budget needs to be finalized and approved by all department heads and business leaders in your company and each department should know what they have to work with in the coming year.
Any changes during the year need to be conveyed to those same persons. Feedback from management to departments and from departments to management is necessary throughout the year to deal with changes that occur or changes that are anticipated.
Budgets vs actuals will help with cash flow requirements and can help with tax planning and company marketing and planning.
This is the time of year when you should have those controls in place. Most of the calls I get this time of year are for planning and year end close out. If you don't have your plans in place for 2013, get those started today.
Charlene S Reed, Owner/Author
Responsible Business Services
"Construction Administration Handbook"
www.myconstructionoffice.com
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