Why Planning and Budgeting Are Important to An Organization's Success
GURUS Cloud Connect
What happens when your reality doesn’t meet your plans? When it comes to your company’s annual budgets, this can lead to complications.
In this bite-sized segment from GURUS Cloud Connect, our speakers discuss some of the common hazards that arise during companies’ annual forecasting and budgeting periods.
It’s impossible to plan with 100% accuracy because you’ll almost never guess that “unknown” factor, but there are ways to reduce risk when you’re setting goals for the next year.
How can you reduce the risk? And why are planning and budgeting important to an organization's success in the first place? Geri-Lynn Kushneryk, CFO of GURUS Solutions, shares her tips and expertise.
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John: You know, for viewers, why are we having this conversation? What are some of the detriments to not getting it right? Basically, what happens when planning doesn't meet reality?
Geri-Lynn Kushneryk: So, there's two ways that can happen. One is there's a change in the business and two, there's just a tool problem or there's something wrong with the way that the budget has been.
It's a simple error, it hasn't accumulated properly. So, in that case where there's an error and you've identified that that causes some big problems, and it happens because as you've pointed out spreadsheets are always running around the organization, looking for a home.
And unfortunately, finance is managing multiple versions. When that winds up happening sometimes, you could just take the wrong one or you take a wrong formula or you break the formula.