If you aim at nothing, you’re sure to hit it every time 🙂 Having a solid yearly budget for your company ensures you aim at something worthwhile and increases the chances of hitting it ten-fold. Follow this simple system, by Tony Barakat, to build your company budget and hit your targets in 2019!

Guest’s Background:

Tony Barakat is the Chief Executive Officer and Co-Founder of ABJ Business Solutions. He devises strategies and provides data that improves business performance.

At ABJ Business Solutions, the objective is to provide SME’s with an expert business solution to help their business lay the foundations for growth; put in place efficient processes; understand their numbers; use specific indicators to measure and drive business performance.

ABJ Business Solutions provides a complete finance solution covering bookkeeping, CFO expertise, tax strategy, and compliance, along with innovative IT solutions – at an economical price.

The team demonstrates hands-on expertise in embedding financial information as a core necessity for organisations through the effective delivery of cash flow management, including satisfying bank requirements and negotiations; debtor control; accurate billing; reviewing monthly accounts against budget; maximising existing system reporting; planning and measuring the future through expert financial modelling; and partnering in the key decision-making events.

ABJ has a proven track record of cost control and profitability analysis by product lines so that businesses have the confidence to know exactly where they stand and what they need to do to move forward successfully.

How to Build a Budget and Monitor Business Performance Through Reporting

Part 1: Build a budget in 4 steps

Step 1: Set your initial yearly targets using a top-down approach

Step 2: Review/compare your targets using a bottom-up approach

Step 3: Set yearly targets for operating expenses

Step 4: Break your yearly targets into monthly budgets

Part 2: Reporting and business performance

Step 1: Create a monthly reporting process

Step 2: Schedule a monthly review of the reports with your management team

Step 3: Select the KPI (key performance indicators) for your business to monitor on a monthly basis

Step 4: Use the reports to understand the breakeven point and profitability of your business

A budget that’s planned and managed well is instrumental in monitoring the financial impact of operational plans and business decisions. It’s the most effective way of ensuring that you’re on track to your financial goals and gives you greater confidence and focus. By following the steps outlined above, you can easily build your budget and use reporting and KPIs to fully understand what is going on in your business and to put you in good stead for the future.