Test your budgeting ability

I loved yesterday’s piece from accountant Marc Peskett on the five questions that entrepreneurs MUST be able to answer.

I agree with all of them, particularly the question around being able to clearly articulate your value proposition. As your dear Taskmaster has said a million times, you need to constantly come back to this time and time again if you get off track. This is at the centre of your business.

But I also wanted to throw my considerable weight behind another point Marc raised about measuring your performance against key financial metrics.

Budgeting is never an easy task, but it’s something every business must attempt – and work to get better at.

As Marc says, reviewing your financial performance constantly is important – it’s not just an end-of-year job.

But I’d also add that reviewing your budgeting performance is also important. If your costs or revenue predictions were way out, go back and find out what mistakes you made with your assumptions.

You may need to recast your budgets as new information comes to light and your skills improve. Now, this is something very serious and you want to be very careful about big changes.

But honing your budgeting skills is an important task that should not be ignored.

Get it done – today!