• Reforecasting a budget

    Budgeting is a powerful tool when it is put to work and updated regularly. Actively reviewing and updating your budget enables you to more accurately forecast and analyse the performance and profitability for each part of your business. This way you are more prepared and better able to respond if the market changes. Making proactive budgeting decisions early on can save significant money by reducing reactive decisions later.

    Updating your budget doesn’t need to be a drawn-out process, it can be done in as little as five minutes. Revising allows you to compare how your business is currently performing with how you thought it would at the beginning of your financial year.

    For a budget to be effective, you should reforecast it at least three times a year, according to the season, or when something unexpected happens (like a change in the payout). Below is a suggested timetable for when to reforecast your budget.

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