A budget and financial roadmap aren’t just about what the numbers are. It’s also about alignment and consistency with revenue strategies, marketing tactics and customer retention. It’s essential to reset business budgets not only to ensure you’re spending wisely and effectively, but so you are planning for any uncertainties that may lie ahead.
The numbers work alongside all the elements of your business, provide detail in the overall story and highlight where you can learn, optimise and build for the future through a self-informing cycle.
A fresh look at your budget can:
- Identify new opportunities for growth
- Improve existing strategies and tactics across departments
- Uplift profit margins
Importantly, knowing your numbers gives you peace of mind.
Budget Forward
From informative monthly Management Accounts, to planning out detailed revenue growth budgets to increase your staff and reach goals, clarity in the numbers underpins your confidence for the road ahead.
We start by looking at 3 things:
- What can you (or want to): control
- What can you (or want to): change
- What can you (or want to): cut
While costs go up all around us, looking at what you need and want for the long run can often reduce your overall costs and overheads. Here are just 4 of the things that you can look at to ensure your
Payment Fees
Ensure you’re using the right processes, platforms and methods when collecting payments and paying suppliers so you’re not stung with inflationary FX rate hikes for international transactions or other avoidable charges.
Variable Budgeting
Positioning your budget so you are ready to pivot at any point is a powerful place to be, because you know you have a plan of action when things outside of your control change.
Consider having multiple financial models, varying factors such as portfolio diversification options, staff changes and allowing for all of those internal and external changes that promote growth, consistency and efficiency.
Optimising Credit Scores
Whether you’re looking at funding now or considering it for option B, looking at the business credit score now helps build a better score consistently – often leading to better rates months and years down the line.
This can also help if you’re looking to re-finance, so you have access to a wider suite of products on the market.
Software Costs
A seemingly obvious one, but a challenging one to get visibility on and manage. A Flexera survey discovered that nearly 1/3 of SaaS spend it under-utilised or wasted – not very good for your cash-flow.
Software can help or hinder your operations, so looking not only at the cost but the utilisation of software can help define and improve working outputs and productivity – as well as make it better for teams in their day-to-day working.
What does 1/3rd of your software spend a year amount to?
If you think you could be under-utilising or wasting money on software spending or anything else, we can help reduce the waste.
We’ve partnered with a platform that gives you software cost visibility, user and licence management in real-time, in one place. We use it and love it – and we’re rolling it out to clients right now.
We’ve also got partnership access to a range of other business-supportive platforms that help in areas like improving your credit score, implementing a buy-now-pay-later option, reducing your debtor’s book or providing advanced budgeting and analysis in real-time. All these layers make sure you’re armed and ready with everything you need to drive your business forward.
Helping leaders and businesses drive success forward
Here at Nuvem9, we do things a bit differently – we’re not your traditional accountants or financial advisors.
We utilise our knowledge, 50+ years of combined experience, technology and a proactive approach to leverage the best support for you that spans your whole business. So whether you’re in need of an outsourced bookkeeping or accounting team, help to scale up your business or planning for an exit, we’re here to support you each step of the way.
We support our portfolio of clients to increase staff retention, plan ahead for new hires and budget and forecast efficiently across their business to make that happen.
Get in touch for a free no obligation chat with one of our Senior Advisors to explore how we can support your accounting, financial planning and business strategy.
Main image credit: Photo by micheile dot com
