Fresh starts… the 1st of June represents PVS’s 4th year of trading.
I love the start of a new financial year. A chance to roll over files, tidy up expense spreadsheets and timesheets ready for them to be filled in again, a new set of management accounts and the chance to wipe away previous variances.
In finance this is a rare treat for me to be looking forward more than looking backwards. In my day to day finance manager role I spend a lot of time looking backwards. How we faired last month, how this compares to last year, how much it used to cost. This month I get to look forward… to try and predict what the next year will bring to PVS and how this will impact the budgets which I have drafted over the last couple of months.
Traditionally budgeting is seen as something enforced upon an organisation that is rigidly adhered to upon pain of death. Any underspends are deftly swept away the following year and overspends become built into the budget allowing costs to creep up.
Budgeting has been challenging in the fast-paced environment PVS has become. When we set last year’s budget there were 3 office staff – now we are 7! We are spending more time on the road visiting our clients in their premises and our revenue streams have diversified from our main stay of consultancy to supplier management, asset finance and outsourced fleet management solutions. I believe in a bottom up approach to budgeting, examining each cost line to determine how that cost will behave over the following months and budgeting accordingly. Neither accepting the overspends nor assuming that any underspend which occurred last year will happen again this year.
PVS is looking ahead, we’ve revisited our 5-year plan and drawn up our budgets. We have set measurable, financially rewarding targets for our staff to encourage them to help grow the business and deliver the best customer service and value to your businesses.
So where looking backwards and reviewing the past certainly has its place and is an important part of reviewing your business I urge you to join me in looking forward – now where is my crystal ball?