I challenge every accountant undertaking this lesson to respond to the question I pose below.
In almost every endeavor in life, be it academic, sporting, or artistic, the best results are achieved when we set goals, and measure performance against those goals.
It is a standard practice for all large corporations to set budgets and measure performance against that goal. In fact it would be considered negligent for a director to sit on a company board where mangement were not accountable to a budget.
Why then do we allow so many of our small business clients to operate without an annual financial goal?
I am interested in what people have to say about this and encourage you to leave a comment at the bottom of this page.
A Comment You May Dispute, Bring it On!
In the video below I state a budget has the potential to make a positive scenario more likely, and that such an outcome can be achieved by asking a very simple question of your client: “What would you have to do to achieve that?”
I explain in the video how budgeting or forecasting assignments should be launched by the accountant upon a trigger signal from a client that could come by way of a question about growth, the airing of a frustration, or a hint of tight cash flow.
Watch the video, and then record your thoughts, a the bottom of the page. Do you think I am correct, can budgeting make a positive outcome more likely?
Click the Button below to download the resources referred to in the video.
The budget tools demonstrated in this course are built in excel and cannot be directly downloaded. To access these resources simply send an email to [email protected] requesting a copy of the file and it will be delivered to you by return mail.