Launching a second-half budget blitz

At this stage of the year, it should be clear how your company's budget is tracking and if it's not looking good, there are a few simple ways you can get back on track.

We are far enough into December to know our year to date financial results for November and to have a pretty good fix on what the first half will look like. For many businesses this won’t be pretty, and certainly not what was planned. Strange how easily that budgeted profit of 10 per cent on sales can evaporate. In combination, 5 per cent lower sales volumes, 5 per cent lower gross margins and 5 per cent higher expenses will do it. In the current climate, businesses are seeing adverse variances of this magnitude, and often much more.


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