Let’s face it: The budget process isn’t always a whole lot of fun, and can present some challenges (which will be discussed in the video). Ultimately, budgets can end up failing because behind them sits disjointed leadership and a lack of strategy that makes the process more difficult.
So how do you budget appropriately? Clint J., CFO at BombBomb was a guest on the CFO Weekly podcast and shared with us the 4 steps he uses for budgeting.
Setting Revenue Build your base plan. This is what you give your board, your investors, your leaders, and it’s what you’re hiring against.
Allocate Investments It’s all about setting the right financial targets. Once you have this, you know what you have to work with and where it is that you need to focus.
Expense Plan Once departments are given their swim lanes, the department leaders can fill in the expense information, allowing the #finance team to lock the budget in place.
Consolidation & Reporting Make sure it all fits. Check it for errors. Check it against the prior 12 months.
He gets into the specifics of budgeting and so much more in this episode. Listen to Clint’s full interview in this video and visit our blog to learn more about the challenges of the budget process.
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#budget #financialplanning #budgeting #budgetingtips