Budgeting is crucial to the success of your business or nonprofit organization. As we have already discussed extensively on this blog, budgeting can improve your business’ efficiency and help you make smart decisions in regards to your company’s finances. Re-evaluating your company’s financial budget periodically is essential, for your company’s financial situation is always changing. Make it a point to re-evaluate the company financial budget at least once a year to make sure that your budget is still working. If you need to make adjustments or craft an entirely new budget, do so.
Once you re-evaluate your company’s financial budget, you will need to introduce the new financial budget to your employees. The new budget will most likely have an impact on how employee projects progress, so employees will need to be informed of the new budget before it is put into place. It is also a good idea to share the new budget with your employees simply so they have a better idea of your company’s financial standing and can make more informed decisions.
Prior to announcing the new budget, consider the information you’d like to receive and make a list of the people you’d like to receive it. If you make this a standardized process, all of your employees will be on the same page and you won’t have to worry about anyone being misinformed.
- Identify the employees to receive the new budget information. If there are employees on different levels, decide if certain employees (such as managers) should hear the budget announcement first. Make a list of who will receive the budget announcement and when, and announce the new budget accordingly.
- Write up an overview of the new budget. In your budget overview, highlight any major changes from the previous budget. This will give your employees an idea of the numbers without having to wade through the entire budget.
- Make a list of action items the employees will need to perform based on the new budget announcement. If certain areas of the budget are being cut, make sure that your managers are made aware of the cut so they can determine how to account for the decrease in funding. By providing your employees with a list of action items to be performed, you are preparing them for success.
- Create an information packet for each employee detailing the new budget. This should include your budget overview, the action item list, and the budget itself. If the information varies between departments or employees, make sure that you mark each packet accordingly so the employees receive the right information.
- Send out an email letting your employees know that a new budget has been prepared. In the email, announce the date that the new budget will be released.
- Set a time and date for a meeting to discuss the new budget with your employees. This will give your employees an opportunity to ask questions about the new budget and how it pertains to them. If you need to hold several meetings with various departments or teams, schedule them accordingly.
Keeping your employees in the loop is crucial to the success of your new financial budget. For more information about re-evaluating your company’s financial budget and rolling out your new strategies, click here. As always, contact us for any budgeting and financial questions. Our CPAs and business advisors would be more than happy to guide you toward financial success.