It’s hard to believe 2024 is just around the corner! How’s your end-of-year budgeting coming along? At Flex-Able Solutions, we like to think of budgeting as setting the stage for all the amazing things your company can achieve in the following year. By getting a handle on your finances early, you’re giving your business a head start on those 2024 goals.
We get it, end-of-year reporting and budgeting can feel (and be) daunting. But don’t worry, we’re here to help. Start by following these budgeting tips from our Flexers:
It’s ideal to start preparing your budget a few months before the year ends. This will give you ample time to gather all necessary data, analyze it, and make well-informed decisions. Plus, starting early ensures that you’ll be buttoned up for tax season. For most businesses, we recommend starting in the early fall.
Your budget should be an extension of your current financial situation. Use your existing financial statements as a template. This ensures consistency and makes it easier to see year-over-year comparisons. Visit our accounting and finance page to get more insights on financial modeling.
Simplicity is key. While it’s essential to be thorough, you don’t want to get lost in the weeds. Ensure that your budget is comprehensive yet straightforward. Rule of thumb: if a team member can’t understand or navigate the budget easily, it might need to be simplified.
Remember, your budget for the calendar year is not set in stone; it’s a guide to help you navigate financial decisions throughout the year. Think of it as your financial GPS, guiding you toward your goals and alerting you if you veer off course.
While the budget is prepared at the end of the year, it’s crucial to review and adjust it periodically. Depending on the volatility of your industry and business dynamics, consider monthly, quarterly, or semi-annual reviews. This type of strategic budgeting will help ensure you’re on track and allow you to make necessary changes if unforeseen events occur.
Past performance can often hint at future trends. By analyzing historical data, you can spot patterns that will help in forecasting. It will also enable you to set realistic and achievable goals.
While both budget and forecast are finance related, they serve different purposes:
End-of-year budgeting is about setting a clear direction for the future. With these tips, you can set your financial plans in motion for 2024! Remember, a budget offers a roadmap, but flexibility and regular updates will ensure you stay on the right path. If you’d like help with budgeting, you’re looking for budget plan ideas, or you have questions about any of our tips above, reach out. We’re here to help!
