Finativ’s Post

2024 Budgeting: Key Advantages and Disadvantages for Businesses As we finalize our 2024 budgets, it's clear this year brings both opportunities and challenges. Here’s a snapshot of what to expect: 🟢 Advantages: 1. Increased Investment in Technology Companies are prioritizing AI, automation, and data analytics. This can improve operational efficiency and customer experience — if implemented strategically. 2. Focus on Employee Development Many budgets are carving out more for upskilling and reskilling. With talent scarcity, developing internal skills is a cost-effective way to stay competitive. 3. Commitment to Sustainability With more budget dedicated to green initiatives, companies are not only cutting costs long-term but also aligning with customer expectations for corporate responsibility. 🔴 Disadvantages: 1. Rising Operational Costs From supply chain disruptions to inflation, businesses are seeing higher costs across the board. This could squeeze margins, especially for small and mid-sized firms. 2. Uncertain ROI on New Technologies Tech investments can be risky, with long payback periods. Without a clear strategy, businesses might find these costs outweighing the benefits. 3. Stricter Financial Oversight Increased regulatory compliance and transparency demands mean more resources allocated to audits and reporting, which can strain budgets without adding direct value. So, how do we navigate 2024’s budget landscape? Focus on smart investments and efficiency. Prioritize areas with high ROI and build resilience for uncertain times. What’s your biggest priority for 2024? ♻️ If you found this helpful, feel free to share it!

Our new Budgets vs. Actuals Report is designed to help businesses by offering a detailed comparison of budgeted versus actual time spent on different work types across multiple projects. With this report, companies can gain valuable insights and make data-driven decisions. Here are three key benefits small companies can gain from using this report.

Approaching year-end, the budget process can be a strategic guide for FP&A teams and companies - here are my takeaways from this great post from Nicolas Boucher! 👇 🗺 Budgets are strategic roadmaps that guide a company toward its objectives, help allocate resources effectively. Align short-term operational goals with long-term strategic plans. 🤝 Effective budgeting requires cross-departmental collaboration to gather input, enhance coordination and create alignment across departments while minimizing conflicts between departmental agendas. 📈 Budgeting should be adaptable to shifts in company performance, changes to economic conditions or unexpected events but being flexible should not compromise financial discipline. 💻 Advanced tools for data analysis and automation can streamline the budgeting process and FP&A teams should adopt technologies that centralize data, reduce errors and enhance visibility into financial performance. 📊 Regularly comparing actual results with budget figures is critical for identifying variances and making proactive adjustments, guide refinements to future budgets and ensure continuous improvement of the budgeting process. #FPandA #Budgets #Collaboration

The End of the Year is Coming: Is Your Business Budget Ready? As we head toward year-end, now is the perfect time to ask yourself: Does your business have a budget in place? A budget isn’t just a spreadsheet or a set of numbers. A budget isn't chains holding you down either. It's your business's compass! It gives you direction, keeps you on track, and helps you see whether you're moving toward profitability. More importantly, it allows you to make small, strategic adjustments when needed. Without a budget, you're flying blind. And believe me, I hear from a lot of businesses right now that they don’t have one — yet. If that sounds familiar, you're not alone. Do you have a budget in place? If not, now is the time to get started! #FractionalCFO #BusinessPlanning #Budgeting #FinancialSuccess #SmallBusiness

Do you understand the value of setting and then actively monitoring a financial budget for your business? Here’s why it’s important: https://lnkd.in/g6zusJRJ #businessbudget #financialbudget #nowfortomorrow

In today’s fast-paced business world, productivity analysis has become a critical focus. The FY24 Global Market Pulse Survey shows a 5% increase in productivity-focused projects across industries. This trend is driven by rising operational costs, inefficient budgeting, and the increasing demand for flexibility in resource allocation. As the calendar year nears its end, organizations—especially publicly listed ones—take a hard look at their budgets. Was the spending done wisely? Were the resources aligned with what matters most? Organizations are tackling rising operational costs and the need for flexibility head-on. These challenges have sparked a resurgence of Zero-Based Budgeting (ZBB)—a concept introduced in the 1970s that is once again proving its value as a modern cost-management process. But why the resurgence? In most organizations, 90% of budgets remain unchanged year after year, with only 10% being reallocated. Over time, this leads to detailed tracking of expenses taking a backseat, causing organizations to search for new ways to optimize spending. ZBB offers a simple, logical approach to resource allocation by starting each budget cycle from scratch and aligning every dollar with business priorities. In simple terms, ZBB starts with a clean slate, untangles processes and expenses, and makes spending more logical. Here are 5 practices that make ZBB work: 1. Align ZBB with Culture & Objectives - Customize ZBB to fit the organization’s unique needs. One size doesn’t fit all— hence, customization is key. 2. Adopt an Intelligent Target-Setting Approach - Not every dollar is equal. Some are smart investments, while others are not so much(let's call them 'just spendings'). ZBB helps to sort the good from bad, the investments from 'Just Spendings'. 3. Leverage Data for Spending Visibility - Use data and digital tools to make expenses visible. It’s true—what gets measured, gets managed. 4. Change the mindset of frontline - ZBB is not just about finance or number-crunching. It’s about enabling managers and teams to think differently about productivity. Execute like a co-owner, and watch like a coach. 5. Plan Carefully and Stay Flexible - Keep an eye on the process, review often, and adjust to stay in tune with your goals. At its core, ZBB helps organizations uncover what’s holding them back, make smarter decisions, and align spending with what truly matters. It’s not for the faint-hearted, but it eventually strengthens a culture of ownership and collaboration—and drives progress in a way that sticks. So, is ZBB the way forward? Or just a trend making a comeback? What are your thoughts on the resurgence of ZBB? Are you seeing similar trends in your industry? Here is an interesting read on Zero-Based Budgeting that dives into its potential and limitations. Link - https://lnkd.in/dE_dsCAW #ZBB #HRTransformation #Budgeting

Are your finances holding your business back? Budgets may be the key to unlocking its growth. Our latest blog post reveals five essential steps for creating a strategic budgeting plan for better financial control. Read more - https://lnkd.in/gGxyfD3C #budgetallocation #budgeting #finance

Mastering the Budget Process. Creating a robust budget is crucial for the financial health and strategic planning of any company. Here’s a streamlined process to help you develop an effective budget: 1. Set Expectations with Management Begin by aligning with management on financial goals and expectations. Clear communication ensures everyone is on the same page. 2. Sales Forecast sales accurately by analyzing market trends, historical data, and potential growth opportunities. Sales projections are the foundation of your budget. 3. Operational Plan Develop a detailed operational plan that outlines the necessary activities and resources to achieve your sales targets. This includes production schedules, staffing needs, and other operational requirements. 4. Resources Identify and allocate the resources needed to execute your operational plan. This includes human resources, technology, and other critical assets. 5. Standard Costs and Overhead Calculate standard costs for production and operational activities. Don’t forget to include overhead costs such as rent, utilities, and administrative expenses. 6. Income Statement, Balance Sheet, and Cash Flow Statement Prepare these financial statements to provide a comprehensive view of your company’s financial health. They help in tracking performance, making informed decisions, and ensuring financial stability. Implementing these steps can lead to a well-structured budget that supports your company’s strategic goals and financial health. About Arun Praveen Rajaghatta CPA: As the President of "CPA is my Accountant" with over 5 years of experience, I specialize in financial management and budgeting for tech service companies. Connect with me to explore more about effective budgeting techniques and how they can benefit your business. #Budgeting #FinancialManagement #TechIndustry #StrategicPlanning #BusinessFinance

Budgeting isn't just about numbers; it’s a vital roadmap for every small business aiming for success. Different types of budgets, like cash flow and capital budgets, help streamline operations, enabling smarter financial decisions that support growth. With budgeting tools evolving, there's now a wealth of resources at our fingertips, allowing us to track finances in real-time and adjust as we go. Have you noticed how budgeting impacts your business decisions lately? Let’s share our experiences and strategies! #Budgeting #SmallBusiness #FinancialPlanning #GrowthTogether https://lnkd.in/en_kzE3s Entrefy

Prepare for a Successful 2025 Budgeting and Planning Season! 🚀 Read on for a sneak peek of our 2025 Planning Guide insights featuring answers to these questions and more: - What are the most promising 2025 investments? - Where should you pull back on your spending? - How can you fuel experimentation with your budget? https://lnkd.in/ekgQ3VXQ #Budgeting #Planning #2025Investments #FinancialStrategy #BusinessGrowth