12 ways to ensure no buy-in to the annual budget process

Written by Jenny Okonkwo

  • Treat it as a ‘Finance only’ chore performed once a year, purely to keep Group / Head office (located elsewhere) happy
  • Unilaterally agree how marketing and promotional spend should be treated in the financial statements
  • Don’t consult with suppliers and service providers re estimates on major overheads such as utilities – split and allocate quarterly service charges across all months
  • Exclude the Fleet department (if it applies) when calculating driver headcount and petrol card charges for the coming year
  • Take an arbitrary view on allocating sales volumes and ignore the basis / data criteria upon which Sales bonus / incentive schemes are calculated
  • Unilaterally reduce major cost of sales items (e.g. product warranty) with no insight into whether this is feasible or realistic
  • Delegate the budget process mechanics and roll out advanced planning ERP based tools to the business with no prior training or orientation
  • Stay away from a strategic business expansion planning exercise that requires a re-cut and re-allocation of the original company budget
  • Refrain from taking a leadership position in presenting and explaining the financial impact of major projects to senior management
  • Ignore major P&L variances to the budget, arising from monthly reporting of the results
  • Treat the quarterly business performance review meeting as a social event
  • Avoid preparing quarterly forecasts to identify and understand the future impact of the actual results to date.

About Jenny Okonkwo

A MESSAGE TO VICE PRESIDENTS IN FINANCE You know how you are continuously frustrated with trying to balance external compliance requirements with supporting the business internally? I solve this. I do this by using my natural talent for detecting and eliminating waste, duplication, inefficiencies. Documenting procedures, streamlining business processes to help define and clarify roles and responsibilities. Automating manual outdated systems, designing and implementing new ways of working, analysing business data to improve decision making. I help companies develop and improve the internal controls over their financial reporting by assisting in the delivery of Sarbanes Oxley (SOX 404) readiness programs. This allows focus to be placed on compliance and knowing that internal business is taken care of, helping to minimize financial risk to maximize commercial opportunity. Even though I am an accountant by trade, I’ll always be a problem solver at heart, which is shown here. I’m always looking for a new problem to solve, so if you’ve got a doozy you need a hand with, feel free to contact me directly at 647 838 9606 or drop me a line at jenny@transform-consulting.ca I have also helped local business entrepreneurs and sole proprietors prepare their voluntary disclosure applications, computerize their manual accounting systems, remove their record-keeping backlogs, automate their processes using both cloud based and desktop accounting solutions, prepare their personal and corporate tax returns. Join my LinkedIn Group now to brainstorm and collaborate from any of these perspectives. Connect with me on Twitter and Linkedin.
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One Response to 12 ways to ensure no buy-in to the annual budget process

  1. Danielle says:

    Amusing and you raise some good points. People just don’t want to get involved in the process … maybe it’s a fear of numbers….?

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