Budget Booster – 4

This budget booster is about keeping on top of the numbers.

It’s tempting to leave financial management to the end of the month – especially if finance “isn’t our thing”.

So make finance a weekly habit.? Money Monday. ?Finance Friday. ?Spend an hour or so every week looking after the financial stuff.

This helps you keep on top of the numbers, and also bring finance to the front of your mind more frequently.

What do we do in our weekly finance slot??

Check purchase invoices and approve them for payment.? Invoice customers (leaving this until the end of the month, often slows down the subsequent payment).? And keep an eye on the costs for the month as they build up in the finance system.?

You don’t need to look at all your costs.? Most managers have half a dozen critical costs.? Obviously the big numbers (like wages or materials): if they go 1% out of kilter it’s a big problem very quickly.

And the expensive resources, like contractors or overtime.? Costs that will quickly start to damage our budget.

Or costs that should be small, but can quickly become catastrophic.? We often have to use non-financial information to capture these.? Rework or faulty production.? Customer complaints.? In a Housing Association, vacancies.? Legal claims against us.? We need to nip these in the bud and stop them escalating.? Often, by the time they do become actual costs it’s too late.

What are your critical costs, and when will your weekly finance slot be?

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Find more on my website:?www.attainmenttraining.co.uk.