What is one thing that all successful business owners have in common? Budgets.
Starting on January 1 we are helping our GURU customers build better companies by helping them with P&L budgeting to stay on top of their finances by:
- Working with them to establish a budget for the next 12-months,
- Tracking that budget to their actual performance, and,
- Hosting quarterly calls to run through their budgets to actuals.
How much does GURU Budgets Cost?
We understand that engaging in a budgeting process is very involved, and we want to keep this service accessible to you, so we are offering this service for an introductory rate of $3,500, or $300/month for 12-months. This low monthly service fee includes:
- Initial 12-month P&L budget
- Up-to 1-hour for discussing and fine tuning the expectations that will go into your budget
- We will enter budget into your QBO or Xero account, so you can view it easily
- We will produce monthly Budgets to Actuals reports, which will be included in your monthly reports in your GURU client portal
- We will host quarterly calls of up to 30 minutes each with your budget expert to run through your company’s performance.
Do you want to take it farther? Consider engaging with one of our Fractional CFOs to help you:
- Identify variances between planned vs. actual performance
- Spot trends and patterns in your financial data
- Make timely adjustments to your business strategy
- Improve forecasting accuracy for future periods
- Enhance overall financial control and accountability.
Why budgeting is important
- Enhanced Financial Control: Budgeting provides a clear way to manage income and expenses, allowing businesses to maintain better control over their financial resources and avoid overspending.
- Improved Decision-Making: With a budget in place, businesses can make more informed decisions based on accurate financial projections and real-time performance data, leading to better strategic choices.
- Goal Alignment: Budgeting helps align financial resources with business objectives, ensuring that money is allocated to areas that support the company’s long-term goals and growth strategies.
- Early Problem Detection: Regular budget to actual comparisons allows businesses to identify potential issues early on, such as unexpected expenses or revenue shortfalls, enabling proactive problem-solving.
- Increased Accountability: A well-structured budget creates a system of accountability across the organization, encouraging departments and individuals to take ownership of their financial responsibilities and performance targets.
What are the benefits of tracking your budget to actuals on a monthly basis?
When reviewing your QuickBooks Online budget or Xero budget each month, you will be armed to review your finances with ease. Here’s what you can expect from these monthly budget reports:
Revenue Analysis
- Sales Performance: Comparing actual sales figures to budgeted amounts, identifying any significant variances.
- Revenue Trends: Analyzing month-to-month trends and seasonal patterns in your income.
- Customer Insights: Reviewing top customers and any changes in buying patterns.
Expense Management
- Cost Control: Examining major expense categories and how they compare to budgeted amounts.
- Unexpected Expenses: Discussing any unforeseen costs and their impact on the overall budget.
- Expense Ratios: Analyzing key expense ratios (e.g., cost of goods sold as a percentage of revenue) and how they compare to industry benchmarks.
Profitability
- Gross Profit Margins: Reviewing margins by product or service line.
- Net Profit: Comparing actual net profit to budgeted figures and discussing any discrepancies.
- Profit Trends: Analyzing profit trends over time and identifying factors influencing profitability.
Budget Variances
- Significant Deviations: Identifying and explaining any major variances between actual and budgeted figures.
By conducting these monthly reviews, Achen Henderson CPAs can help you gain critical insights into your business’s financial health, identify areas for improvement, and make informed decisions to drive your business forward.
The ability to compare actual results to budgeted figures in real-time using QuickBooks or Xero allows for more agile financial management and strategic planning.
How often do we meet to review my budgets for actual reports?
At the beginning of your budget process, you will spend an hour with one of our Fractional CFOs to discuss your prior year performance and what you expect for the coming year. Your Fractional CFO will enter the budget into your bookkeeping software and set up the budget to actual report which will be included in your regular financial reporting packages from our GURU Team.
Your Fractional CFO will then schedule a quarterly 30-minute check-in to discuss your results! You always have the option to meet more frequently with your Fractional CFO at additional cost.
How do I sign up for GURU Budgets?
Since we only have limited capacity in the first part of 2025, we are only accepting 10 clients into our new budgeting program, so please sign up quickly to secure your spot – and we will be in touch in the new year. To get moving today, click here or email success@achenhenderson.ca