Corporate budgeting in an uncertain world
Our accountants can help you understand where your business is today and help you plan for next year.
06 October 2020
How do you plan a yearly company budget when the future is uncertain?
All who are responsible for preparing and/or approving a company budget will concur that in uncertain times, it is likely to be tricker than in the past.
Budgeting means determining strategies and goals for the future, making – as far as possible – realistic assumptions and projections based on the chosen strategies, goals and assumptions. But on which strategies and assumptions can one build the forecast? ‘Typical’ buying trends, consumer spending, economic factors and volatile markets mean there’s a lot of uncertainty.
Be prepared to think ahead
Anticipate that you might need to be flexible and understand what that might look like financially. Will you need more cash available? Do you need to account for less or more revenues? Will due and future payables be recoverable? How will the fixed and exceptional charges evolve? Will you need to hire or let go of staff?
Seek expert support
Accounting and forecasting can be tricky, so ask for specialist help. Accountants can help you understand more about where your business is today and how you’ve fared so far, helping you plan for next year. Accountants will also help you to see where and how you can possibly tidy up, reconcile and optimise the financial figures of yearend so as to have a solid and transparent basis for the coming year ahead. They can point out what actions should be considered to get there in the remaining months.
Understand both the bigger picture, and the details
In the light of the above ask for more reports if you need them: extra insights, prepared by experts can help get a better idea of the bigger picture.
Talk through budgeting and accounting
Understanding company accounts can be challenging – especially in today’s climate. Reach out to partners to discuss specific concerns. At ZEDRA, we’re always happy to talk through different scenarios and options to help put our client’s minds at ease so that they focus on strategies and goals for the future.
For more information, please get in touch.