By: Christi Johnson, Strategic Management Consulting Services
The following is part five of a multi-part series on The KHA Way, KHA Management Consulting’s Integrated Service Offering. This blog series includes the benefits of using KHA Management Consulting Services and the components included.
Once financial data is readily available and you are informed of your current business position and performance, you may be surprised by the business results in the reports. You may realize the accounting controls are in place and working as expected, so the next area of concern for you as a mid-market industry leader is determining what drivers will produce the desired results. No manager/owner wants to work tirelessly day in and day out only to realize that their family’s livelihood as well as that of their employees’ families is in jeopardy. Do you have the answers to the following questions:
- Why is the strong revenue stream of the new business line not equating to cash in the bank?
- Where is money being spent?
- How do you plan?
- Where should you focus your spending?
- How do you hold your team accountable?
As a business owner/manager, the answer to these questions and many more are found in the use of a corporate and/or departmental budget.
Corporate and/or departmental budgets can help guide your business activities and provide a point of reference for profits and expenses. You will never get anywhere without a plan. Budgets are also equally important regarding business decisions that will determine your business’s longevity. Managers that see the importance of time spent preparing for the future are better prepared. However, you may be at a loss as to how to develop or implement a budget for your business. As your trusted advisors, KHA Management Consultants can assist you in preparing a budget that will help provide meaningful information regarding your business’ resources and expenditures.
As part of The KHA Way Budget offering, we navigate the budget process with your management team. To ensure the information is relevant to your business needs, our starting point is always your most current profit and loss statement compared to the previous 12 months. This data will provide a framework for outlining the budget and ensuring that it will align with your accounting software outputs to provide meaningful comparative reports. At this point, we will meet with your leadership team and any pertinent personnel to gather information regarding future needs and foreseen changes. This information is then compiled in an easily updated format so that additional information and different scenarios can be discussed and visualized throughout the process until the finalized management approved budget is delivered. This process allows you as the owner/manager to dictate the inputs that are reflected in your budget so that it is catered to your business needs.
At KHA Management Consultants, we work with mid-market industry leaders to identify what makes the organization, its stakeholders, and its’ employees tick. We facilitate the Accounting Visibility process with your organization’s key constituents to ensure buy-in, ownership, and a new way of thinking about the organization and its stakeholders amongst all levels. From a resource perspective, we primarily use our unmatched experience but also tap into the top-level resources such as those made available by Harvard Business Review, relevant strategic management authors, and MentorPlus. Some of those materials, frameworks, and lessons have been used in authoring this series.
KHA Management Consultants, the consulting department of KHA Accountants, PLLC, based in Flower Mound, Texas, is always looking for opportunities to work with key clients ready to take their organization to the next level. If you have a desire to improve, take the first step toward success with the strategic management experts, and contact us at 972-221-2500.