Early to mid-January is a time when people in leadership are reflecting on the previous year and making “company resolutions” for the new year. When it comes to budgeting and goal-setting, it can be helpful to review your prior year’s financials. Here are 5 tips to get you started:
- It’s not too late to establish a budget for the new year.
- Now that you are closing out 2017, it’s the perfect time to reflect on the last year and make changes. What worked well? What could be improved upon? Changes could include: budget, processes, restructuring, incorporating new talent (check out our HPT team for help with any of these).
- Your budget could be established by looking at the past 12 months or even just the last quarter if there’s been any significant changes in 2017. Think about what’s to come in 2018. Are there any large expenses (ex. software updates, more talent, etc.) that might affect the expense budget? Same with revenue: are there any new clients you are acquiring or old clients leaving that would significantly affect the budget?
- Processes – are your current processes working? Do you need to do some internal restructuring to help your business grow? This could include more handoffs to current employees and contractors or bringing in some new talent.
- Establish a budget and update your financials monthly so you can see where you are month to month, throughout the year; instead of waiting until late in the year when it’s too late to make changes.
Kicking off the year here at KSI, we’re doing this same type of review. We hope you find it helpful, too.
Here’s to a prosperous 2018!