Tag Archives: Budgeting

Four Ways to Build Better Budgets – HBR

Actually, unless you are a brand new startup, budgeting and planning for future is well under way for 2013.   If you haven’t started or need some help, this is a good points article.

Excerpt:  It’s that time of year again: Budgeting and planning for next year are in full swing. Everyone has been through this process. At one end of the spectrum is the struggling business unit that unveils the miraculous “hockey stick” trajectory their sales and profits are just about to take…again. (Don’t bet on it.) At the other end are high-performing business units that are starved of the resources they need in order to fund growth because they are subsidizing another business unit’s hockey stick.

Through hundreds of sessions like these across dozens of industries, we’ve identified four best practices to make your budgeting and planning process much more effective and less dependent on illusory projections.

Read full article via Four Ways to Build Better Budgets – Jason Green – Harvard Business Review.

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Revenue is Not Coming Back | Change Management Strategy | PwC

Recommended for all small business owners  — takeaways and how-to.

Excerpt:  The current economic environment in the United States and around the world is challenging for banks and business alike. Given the macroeconomic forecast, financial institutions can no longer grow their way out of their problems. Business areas that traditionally provided revenue growth for financial institutions are not growing sufficiently to overcome new capital and regulatory requirements, and activity levels of several major financial sector businesses are flat or declining.

Increased regulation and capital requirements along with limited revenue leverage will require business-model changes boost profitability. Leading institutions are implementing continuous expense management programs to extract value from business-model changes by focusing on efficiency through each key step in the budgeting and reporting systems.

Watch video and download report via Continuous expense management for financial institutions: PwC.

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Filed under Budgeting, Forecasting & Planning, Leadership, Operations & Innovation, Management, Small Business

Divisional Managers and Internal Capital Markets — The Harvard Law School Forum on Corporate Governance

Of-interest and food for thought and strategy.   Small business takeaways.

Excerpt: While the capital budgeting process is one of the most fundamental corporate decisions, introduced at the very beginning of virtually any finance textbook, we still know relatively little about this area of the inner workings of a firm. Our paper seeks to advance our knowledge of this corporate decision by studying the role of human capital in a firm’s capital budgeting and the involvement of managers at various levels of hierarchy. In particular, we construct a hand-collected dataset of divisional managers at the S&P 500 firms and examine the effect of managerial influence on investment decisions and firm value. We study managerial influence via both formal channels (e.g., managers’ board membership and seniority), and informal channels (e.g., managers’ social connections to the CEO via prior employment, education, and nonprofit organizations).

Read full article via Divisional Managers and Internal Capital Markets — The Harvard Law School Forum on Corporate Governance and Financial Regulation.

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Filed under Budgeting, Forecasting & Planning, Leadership, Operations & Innovation, Small Business

One-Stop Guide to Financial Forecasting Including Free Templates

This collection of articles, how-to, templates and examples covers a lot of a small businesses’  questions on forecasting to include the difference between budgeting and forecasting.   Great “stuff” but unless you plan to download to peruse when you need it or have time later  —  a heads-up,  it is lengthy.

Excerpt introduction: Whether you’re starting your own small business or if you’re already managing a successful enterprise, there are ways to streamline your forecasting processes. At the end of this catalog you’ll even find advice for forecasting and analyzing your own personal finances.slide 1 of 2 When it comes to financial forecasting, are you a novice, or do you think your analyses are pretty reliable? This useful collection of articles starts with the basics, helping you to learn the difference between forecasting and budgeting and brushing up on your accounting terminology. You will also learn, step by step, how to analyze a financial statement and create a three to five-year sales forecast. If you’re unfamiliar with common forecast ratios, you can read all about them. What if you’re a little further along in your knowledge? You can look at different types of formulas or study the benefits of a rolling forecast method. For those familiar with Excel we have plenty of templates and worksheets to help you along the way. Find out where you can download some free Excel (and other) templates.

Read full list and use links via One-Stop Guide to Financial Forecasting Including Free Templates.  From BrightHub.com

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Filed under Accounting, Bookkeeping, GAAP, IFRS, Budgeting, Forecasting & Planning, Small Business

Budgeting Tips for Small Business Owners

Good read…..1st  Quarter done…..use information and to-do for 2nd, 3rd and 4th Quarters 2012.

Excerpt…….If your fiscal year parallels your wall calendar, then you made it through Q-1 or as you may formally call it, the first quarter. Perhaps you’re feeling optimistic about the goals you’ll accomplish this year, or are concerned about your revenue goals for the second quarter. It’s best to look at where you’ve been to figure out a great strategy for where you are going next. Here are four things you can immediately do to make the most of the remaining three quarters of this year in your small business.

Read full article….via Budgeting Tips for Small Business Owners | SucceedAsYourOwnBoss.com.  From Small Biz Lady

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Retail Accounting: Library of Helpful Resources, Tips and Techniques

Here are some basics and “get started” retail accounting for you.  As the author writes….even if you hire an accountant, and we hope you do, you need to know the basics in order to manage your business.

Excerpt…Are you looking for some expert advice to help you with your retail accounting? Browse this guide of tips, techniques and resources from the Bright Hub library of general accounting tips.

Whether you hire an accountant or CPA firm to handle the accounting for your business or you handle it yourself, you need to have an understanding of general accounting principles, methods and formulas. After all, if you don’t understand the process yourself, how can you be sure that your accountant is following the proper procedures?

We’ve created a collection of expertly written articles to help you increase your knowledge about this important business topic. You will find out why you need to budget and what the best inventory tracking and reporting methods are. By the time you finish this guide, you will know the difference between a balance sheet, a trial balance, and a general ledger……

Read full article and access sources here….via Retail Accounting: Library of Helpful Resources, Tips and Techniques.  From Bright Hub

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Filed under Accounting, Bookkeeping, GAAP, IFRS, Budgeting, Forecasting & Planning

Three Capabilities to Fuel Today’s Dynamic Planning and Forecasting

The link provides a download button for the white paper…… Sorry, guys, you will have to register to download….. it is free once you register.

Excerpt introduction……“In this white paper, you’ll read why traditional planning and forecasting processes are not enough in today’s environment. And, you’ll learn about the three capabilities that form the foundation of modern, dynamic planning and forecasting processes:

• Analytics – including multi-dimensional analysis, on-demand scenario planning, and predictive analytics

• Modeling – the ability to quickly build and revise sophisticated models to find the best path forward

• Contribution #or participation# – rich workflow and role-based interfaces that facilitate broad, frequent contributions to plans and forecasts

If you want to move beyond the traditional finance role and play a more visible, pro-active role in supporting business decision making, read this white paper today. “

Download white paper here…via Three Capabilities to Fuel Today’s Dynamic Planning and Forecasting | Proformative.

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Five Common Statistical Analysis Mistakes

Good read……data management and analysis.

Excerpt………..you’ve sat in a business operations meeting where hours were spent explaining a two percent deviation in weekly sales even though the random variation in the data is five percent. Maybe you’ve sat in quarterly Marcom budget planning sessions where you are using a sophisticated market-mix model to allocate your spend but with a “small” caveat – this quarter, company leadership has decided to increase brand spend 10-fold and decrease non-brand spend proportionately. These situations epitomize some of the most common mistakes in statistical analysis. In the work of performing analytics services across multiple verticals and geographies, common themes arise:

Read full article…..via Five Common Statistical Analysis Mistakes.  From Information Management

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Filed under Business Intelligence, IT, Data Management, Metrics, Cloud & Mobile, Leadership, Operations & Innovation

Battle-Tested Best Practices in Planning and Budgeting

You do have to register in order to download the whitepaper …….

Excerpt introduction………The planning process includes: Strategic Planning, Operational Planning, and Financial Planning. It’s the integration of these plans that provides the mechanism to adjust to the actual scenario.

Download white paper here……via Battle-Tested Best Practices in Planning and Budgeting | Proformative.

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The Budget-Building Book for Nonprofits: A Step-by-Step Guide for Managers and Boards, 2nd Edition

According to the blurb, this is the “gold standard” for non profit budgeting help…..it is not free but affordable in either book or ebook form.  Leadership

Excerpt…..This best-selling nuts-and-bolts workbook, now in its second edition, has become the gold standard for nonprofit managers and boards who must work through the budget cycle. The book offers practical tools and guidance for completing each step of the budgeting process. Designed to be comprehensive and easy to use, The Budget-Building Book for Nonprofits provides everything budgeters and nonfinancial managers need to prepare, approve, and implement their own budgets.

Read full introduction of book here…..via Wiley: The Budget-Building Book for Nonprofits: A Step-by-Step Guide for Managers and Boards, 2nd Edition. From Wiley

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Filed under Budgeting, Forecasting & Planning, Leadership, Operations & Innovation, Not for Profit

B2B SEO 2012 Strategy Planning: 4 Recommendations

Great read and information…..  study results from peers and basics for 2012 planning and budgeting.

Excerpt……In early November, Webmarketing123 released their first state of digital marketing report. The report surveyed more than 500 B2B and B2C marketing professionals, with roughly a 66-34 percent split, respectively. The report takes an in-depth look at digital marketing focus, impact of SEO, PPC, and social media programs, and where marketing managers are focusing budget in 2012.

Read full article……via B2B SEO 2012 Strategy Planning: 4 Recommendations – Search Engine Watch (#SEW).

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Filed under Budgeting, Forecasting & Planning, Marketing, Branding, Sales, Advertising, eCommerce & Social Media, Website & Digital Media

Free Capital Budget Template (Excel)

Your capital budget is different than your operating budget…… Do you know the difference and why you need a capital budget?   Read on.

Excerpt……Capital budgeting is the process of evaluating a firm’s investment opportunities that can enhance shareholder value. Management uses capital budgeting to determine if a project is worth pursuing based on the amount of capital available and the expected return on investment over an appropriate period of time. Capital budgeting estimates the expected cash flows and payback period and calculates the Net Present Value (NPV) and the Internal Rate of Return (IRR) on investment.

Read full article……via Free, Downloadable Sample: Capital Budget Template (Excel). From Bright Hub

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Budgeting for International Operations : Strategy

Good read 13 page PDF from their current magazine issue….  CFO and all C-Suite

Excerpt……Foreign currency exchange rates, interest rates, and inflation are the three major external factors that affect multinationals’ budgets. Chief financial officers know they have no influence or control over this “Bermuda Triangle” of outside forces. Nonetheless, these elements must be estimated, evaluated, and examined as part of a multinational’s strategic plan.

Read full article…….http://www.imanet.org/PDFs/Public/MAQ/2011_q3/MAQ_summer_2011_rivera.pdf  From IMA Management Accounting Issue

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Why You Should Reconsider Your Business Forecasting Strategy : AMEX

How are you doing with your 2012 budgeting and forecasting?   This article gives you more information on the rolling forecast as a method that can be very useful for small businesses…

Excerpt……..forecasting the future of small and entrepreneurial companies is usually more difficult than forecasting much larger companies with more predictable sales. So, is there a way to make the budgeting process more meaningful for entrepreneurs?

Read full article……via Why You Should Reconsider Your Business Forecasting Strategy : Money :: American Express OPEN Forum.

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Management and Business Plans

As we have said in the past few weeks, ’tis the season of budgeting, forecasting and planning.   Good paper

Excerpt…….In addition to being a strategy planning document and a roadmap to success, a business plan is also a living or “evergreen” document that functions as an evolving management plan.

Included in this article are a review of eight key elements in a comprehensive business plan and a look at how a good business plan functions with regards to business definition, competitive differentiation and strategic goals.

Download and read full paper PDF…..via Management and Business Plans | Los Angeles CFO Services | CFO Edge, LLC.

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