Why end of September is a key date for budget owners?
And what a budget owner should be doing at this time of the year
One of the biggest challenges for budget owners is that budgets become outdated. And, the factors that can influence budgets are usually out of our control.
The end of September provides an opportunity for budget owners to bring an awareness to these challenges. An opportunity to communicate what has changed and what the financial impact of these changes looks like in the future.
Quarter 1 Reset (If your budget year starts on July 1)
“60% of companies polled by the Wall Street Journal said their annual budget targets became obsolete by the second quarter”
If your budget year started on July 1, the end of September presents an opportunity for budget owners to revise their budgets. At a minimum, assumptions should be reviewed and updated. This is often referred to as a “Q1 reset”.
Quarter 3 Sense Check (if your budget year starts on January 1)
By the time you get to end of Q3, every manager wants to be able to answer one key question:
“Where do you think we will land at the end of the year?”
At a minimum, trends should be reviewed and compared. Is the forecast for the last 3 months the same as the average trends from the last 6 months? If the answer is “No”, then the question to answer is “What are we doing differently?”
Trying to explain what’s really going on with your budgets becomes easier when variations are communicated as they happen. The end of September provides budget owners with an opportunity to do this
NEED MORE HELP? READ ON…
I’m thrilled to offer my subscribers an exclusive opportunity throughout October only:
A free 15-minute virtual coaching session with me! Whether you’re struggling to wrap up your end-of-September budgeting or have other financial questions, I’m here to help.
These sessions will be available every Friday through October, and spots are limited—so be sure to secure yours today and make the most of this unique chance to get personalized guidance on your financial journey.