登录查看更多内容

How can you increase transparency when forecasting your budget?

由人工智能和领英社区提供技术支持

Forecasting your budget is a crucial part of any business, but it can also be a source of confusion, frustration, and mistrust. If your budget projections are not clear, accurate, and consistent, you may face challenges from stakeholders, investors, and employees. How can you increase transparency when forecasting your budget and avoid these pitfalls? Here are some tips to help you.

此文章中的业界达人

由社区从 3 条内容中精选。了解更多

1 Define your assumptions

One of the first steps to increase transparency when forecasting your budget is to define and document your assumptions. Assumptions are the factors that influence your revenue and expenses, such as market conditions, customer behavior, and industry trends. By stating your assumptions clearly, you can explain the logic behind your numbers and how they may change in different scenarios. You can also use your assumptions to test the sensitivity and validity of your forecast and adjust it accordingly.

添加您的观点

Rayan M. Aljohani, MBA

Finance and Accounting Professional
举报内容
In my experiences, increasing transparency while performing budgeting activities requires complete clarity for each departments needs and obligations within any given organization. Meetings with those departments are crucial, understanding each departments obligations is important to accurately forecast your budget. Overall, being transparent and clear in any given organization helps building a successful forecast model. On the other hand, being vague would lead to multiple obstacles, that would've been avoided by simply being transparent.

已翻译

赞
Wing Chow, Dip, BGS, MSA, CPA

The election was a wonderful experience. The process is more important than the end! Now I am enjoying my life again!
举报内容
In forecasting your budget, you have to do an analysis of the trend of the business, the material price increase and the labor cost, considering inflation. You have to be realistic with the sales forecast first and then do the budget of cost accounting in parallel. The budget is a not a wishful list, but the budget can be substantiated by market data of sales and inflation cost of material and labor as well as adequate staffing of all departments.

已翻译

赞

2 Use a standard format

Another way to increase transparency when forecasting your budget is to use a standard format that is easy to understand and compare. A standard format can help you organize your data, highlight key metrics, and communicate your goals and expectations. You can use a template or a software tool that suits your business needs and preferences, but make sure it is consistent and compatible with your accounting system. You should also include a summary or a dashboard that shows the main results and variances of your forecast.

添加您的观点

3 Involve your team

A third tip to increase transparency when forecasting your budget is to involve your team in the process. Your team can provide valuable input and feedback on your forecast, as they have direct knowledge and experience of your operations, customers, and costs. By involving your team, you can also increase their ownership and accountability of the budget and foster a culture of collaboration and trust. You can solicit your team's input through surveys, meetings, or workshops, and share your forecast with them regularly.

添加您的观点

4 Review and update your forecast

A fourth suggestion to increase transparency when forecasting your budget is to review and update your forecast periodically. Your forecast is not a static document, but a dynamic tool that reflects your current and expected performance. By reviewing and updating your forecast, you can track your progress, identify and address any gaps or issues, and adapt to changing circumstances. You should also communicate any changes or updates to your forecast to your stakeholders and explain the reasons and implications.

添加您的观点

5 Seek external feedback

A final recommendation to increase transparency when forecasting your budget is to seek external feedback from experts, peers, or mentors. External feedback can help you validate your assumptions, improve your methods, and learn from best practices. You can also use external feedback to benchmark your forecast against industry standards or competitors and identify any opportunities or risks. You can seek external feedback through networking, consulting, or research, and incorporate it into your forecast as appropriate.

添加您的观点

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Ernest D. K. Amedzro, ACCA

Chartered Accountant | Financial Analyst | Business Consultant | Blockchain Enthusiast
举报内容
VARIANCE ANALYSIS Another way to be transparent in your budgeting is to perform variance analysis to determine how accurate you were during the previous period so that you can make the necessary adjustments. If you are preparing the budget for the first time, always try to discuss with people who have an idea of the area in which the budget is meant for. You can also compare the industry average if such data is available. The objective is to make all involved realise that your figures are not just made up out of vacuum but there are thoughts that went in it. Rolling budgets also help to keep things in perspective and make it transparent.

已翻译

赞

Accounting

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

How can you increase transparency when forecasting your budget?

1

2

3

4

5

6

1 Define your assumptions

2 Use a standard format

3 Involve your team

4 Review and update your forecast

5 Seek external feedback

6 Here’s what else to consider

Accounting

给文章评分

感谢您的反馈

更多Accounting相关文章

更多相关阅读内容