By Yusra Sarkar
We’re in the midst of budget season, but how do you plan a yearly company budget, when the future is so uncertain?
All who are responsible for preparing and/or approving a 2021 Budget will concur that preparing next year’s budget is likely to tricker than usual, given the current circumstances. 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. Not to the less the ups and downs, back and forth at governmental level create further uncertainty, in particular whether we’re heading to a second lockdown…
Frank Walenta, Commercial Director, ZEDRA Luxembourg gives his insights into what corporations might think about in this respect.
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? Ultimately and sadly, will you need to hire or let go 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 in 2020, helping you plan for next year. Accountants will also help you to see where and how you can possibly tidy up, reconcile and optimize the financial figures of yearend so as to have a solid and transparent basis for Budget 2021. 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 contact Frank Walenta, Commercial Director, ZEDRA Luxembourg