Summer is nearly here, so we’re nearing the year’s halfway point. Managing your Q3 budget impacts your starting point for the following year. Here are some tips to help manage the second half of 2023.
Understand the budget’s goals and plan accordingly
When it comes to budgeting, it’s crucial to have a clear understanding of what the company’s goals are. In this case, you’re looking at quarterly goals. By understanding the projected revenue, expenses, and income, you can proactively address any obstacles that may come up.
Consider the data
When making important decisions, it’s crucial to understand and leverage existing financial data. Analyzing financial statements like the balance sheet, income statement, and statement of cash flows can provide valuable insight into your organization’s financial health and performance.
This information can help you best allocate your resources and make informed decisions. In addition to connecting with stakeholders, leverage existing financial data in your decision-making process.
According to John Wong, Harvard Business School Online’s Senior Associate Director of Financial Planning and Analysis, the key is to use historical data for reference rather than a starting point for your budget.
Evaluate and communicate progress
Tracking and evaluating progress throughout the quarter is essential to ensure we’re meeting our goals. One way to do this is by keeping track of expenses and comparing them against projected costs. It’s also essential to stay in close contact with other organizational stakeholders to ensure that the timeline for completing work is in sync with company-wide project plans.
Regular meetings with key stakeholders are crucial for reporting results and highlighting wins and accomplishments. Using visuals such as graphs can help to show progress toward our goals and keep everyone on the same page.
You might do this regularly already but reviewing vendor contracts and partnerships to look for cost-saving opportunities is always a good midyear activity.
Be sure to check in with your benefits coordinator as well to make sure you’re taking advantage of tax savings through programs like commuter benefits, which can save you 7.65% on payroll taxes and an average of $40 per month for each participating employee when you add a commuter benefits program.
A company with 50 employees can save over $24,000 annually!
Up your budget game for Q4
Once you’re safely through the summer, Q4 will be right behind it, and you’ll be budgeting for next year. Want to get a jumpstart on your competition and add to your skillset? Consider going back to school.
Tip: Use Lifestyle Spending Accounts here to help pay for continued education.
Let Edenred help
Ready to look for savings beyond quarters three and four? Let Edenred help you find solutions to put money in your employees’ pockets and help the company’s bottom line. Schedule a time today to find out more.
