Colleagues, curious!
Did anyone agree, accept, propose, approve the Second Half Year Budget 2020?
How have the forecasts of managers, co-owners or shareholders changed?
In what mood are you discussing the Budget?
What do you expect from the markets and your activities?
Regards!
It still doesn't make sense to me, can work without an renewed budget in the second half of the year?
Most of my successful, small business clients forecast annually and update monthly by substitution of booked actual expenses and revenue from their monthly accounting system after closing into a long range monthly plan for those elements in a separate data base. They then manage the results by increasing marketing and cutting expenses if necessary, or they make distribution of profits to the owners.
In answer to your question, they plan to conduct this exercise on a continued monthly basis in the second half of 2020. This is a highly company private process. They do not disclose the results. They are not required to do so unless they are a public company. I do not comment in the public domain on the results to protect my clients.
Small businesses I work with understand that pricing is not just what clients pay for the product or service but also the expenses to run their business that must be built into what is charged to avoid operating at a loss.
Profit is then calculated monthly after they know their monthly revenue and compare it to their operating expenses. They adjust their future sales pricing and marketing effort based on this analysis and a comparison against the competition's pricing.
Managing those matters makes them competitive in the market and profitable as an enterprise.
Kenneth, thanks!
... But you told me a story from a past life ... I'm curious what is happening right now. I'm not interested in other people's numbers. I want confirmation of the fact itself. It's very simple ... To tell: "Yes, I changed the budget for the 2nd half of the year. I changed the shipping plan, I changed the revenue plan, I changed the profit plan, or rather - loss ... Yes, I have accepted the obligations of the past financial period in the article - overdue debt. Yes, I changed the currency of the accumulated profit balance ... But most importantly: I changed the accounting model and the financial business model… Because the 2020 plan will not be fulfilled. It is not known what will happen next ..."... I would like to hear these words from my management. But they are like everyone else ... They are shocked.
Igor Petrovich,
What I have specified as a process in my response to your question is not from a past life. My clients are practicing the process I have identified as we speak.
Changing the plan(s) and accounting techniques as you have detailed is not the path to dealing with current conditions.
Facing the reality of managing the booked revenue and expenses month by month deals with the situation from accountable management perspective. Actions must then be taken to deal with reality. Moving plans around or changing accounting techniques is an often used, thinly veiled, means to run from reality.
Assessing current conditions against existing plans, accepting the results and dealing with them at time now with marketing and expense adjustments, or an influx of financing to deal with negative results and stay operational are the usual courses.
One must then step back, make a management assessment of whether the long range conditions will continue and put in place a forecast that reflects those conditions, the market and their realities.
Don't change the tools, drive the car. Deferred accountability for not doing so always comes home to roost later, often with disastrous results.
Kenneth!
It is absolutely clear to me that the financial pre-fact of 2020 does not fully meet the standards of observation. There are no reminiscences that will provide a basis for analysis. This conviction is true for a significant number of industries and states. This multidimensional experiment with the planet will continue...
So [going still drive] is meaningless. Global business is difficult to deploy, but it is possible to deploy small business sharply under the current circumstances. Yes, the risks are high. But the inertia is insane. This is the opinion of an entrepreneur. But the manager, he can not afford to abandon the chosen course, which provides the salary. which is why there is little initiative to radically revise plans, including financial ones. . . .
What predictions you have for the pre-fact 2020. % of cash flow execution? % of profit?