The Value of a Strong Budget and Forecasting
Annual and monthly budgets are critical to understanding the flow of cash throughout your business. They often dictate what you can do and when, allowing you to translate income into new investments and projects. It also allows company leaders to make financial decisions with confidence and know what money is available based on current goals and commitments.
A well-planned budget also creates transparency, so stakeholders can see exactly where the money is. Budgeting provides an outline of the company’s priorities and where it wants to focus.
Forecasting is similar but more immediate. With more frequent updating, the forecast can show you realistic estimates of what your company can accomplish in the short term. With an accurate forecast, you can more readily understand and adjust your operations accordingly.
Why Outsource Your Accounting, Budgeting and Forecasting
Outsourcing your budgeting and forecasting is an excellent way to find a variety of benefits on everything from time savings to new insights.
Say you need to create an annual budget. You could assign the task to an existing employee, but if that process isn’t among their specialties, you may get subpar or even inaccurate results. Even if the results are sufficient, the employee might need a significant amount of time to get the job done, pulling them away from other work.
Another approach would be to hire an expert to work in-house. Of course, that new hire will come with extra costs like insurance, taxes and paid leave. And if your needs fluctuate, you could end up paying more for services that a lower-paid employee could accomplish. You may also end up keeping your specialist employee on the payroll even as business requirements lessen.
When you outsource your accounting, budgeting and forecasting, you can avoid many of these problems while also enjoying the following benefits:
- Flexibility: Business needs can fluctuate from month to month and from year to year. The cost of third-party services is more manageable and can flex with business needs. As they change, you can adjust the level of services you receive from your accounting provider.
- Lower overall costs: Without the costs of permanent employment, you can often save money by only purchasing the services you need. Plus, you will likely get more value for your money since these services are performed by experts in the field.
- Expert services: Since you’ll work with specialists, you can expect accurate and reliable insights that offer actionable information. These professionals typically work with a high level of efficiency since they’re well-versed in the requirements of the job.
When you choose to work with a partner like SD Mayer, you also get the assistance that comes with a full-service advising company. In addition to budgeting and forecasting, we can also provide insights to help you reach your business goals and improve operations.