The accounting terms, financial forecast and financial projection, are often used interchangeably, even by some financial professionals who should know better. There are some subtle but key differences in the meaning of these terms that it’s important to understand in order to prepare accurate financial...
Variance analysis is one of the most useful tools available to companies today for business planning, management and review. Used to assess deviations from results of various key performance indicators (KPIs), variance analysis can reveal many aspects and outcomes of financial and operational imperatives.
It has...
In the recent article, How to Create an Effective Pitch Deck, I discussed the importance of the pitch deck as a fundraising tool and listed what I believe are the most important pages or slides that should be included in a pitch deck. One of the...
Most small and mid-sized business owners associate the financial disciplines of forecasting and budgeting with the profit and loss statement (or P&L). In addition to the P&L, forecasting cash flow is vital, and including a balance sheet makes the projection complete. This exercise is essential for any business that wishes...
Budgeting is one of the most important financial tasks performed by small and middle-market business owners and their controller or CFO. The budget sets the financial blueprint for a business, letting managers and other decision makers know how much money will be available to them to meet their departments’...
When they hear the term “financial planning and analysis,” or FP&A as it’s often referred to, many small and mid-sized business owners tune out, assuming it’s something that only large corporations can benefit from. But this can be a big mistake: Any size firm can benefit from conducting the...
Many companies today are under considerable pressure to sustain growth by increasing revenue, controlling costs and improving profits. In the process, they are reviewing their cost management programs with the goal of improving results, especially during this time of the year when most companies are submitting budgets for 2016...
As they come to the end of the first quarter of the year, many Los Angeles and Southern California business owners may discover that their first-quarter results are significantly less than what they had budgeted. If so, they may be wondering how they’re going to get back on track....
Our federal government is engrossed in yet another budget showdown between Republicans and Democrats. Since the heady days of the 1990s, when our federal government actually ran budget surpluses (if you can believe that), the federal government has been running budget deficits that grow larger and larger each year....
Most people realize the importance of establishing and sticking to a household budget. This is the best way to make sure that household expenditures don’t exceed income during the month, forcing families and individuals to have to borrow money or use credit cards in order to make ends meet. The...