Budgeting Viewpoints - by Ravi Patel

    

Entrepreneurs have interesting thoughts on an annual Budgeting process.

 

Some Entrepreneurs believe that they can control the "budgeting" process in their head and don't need a formal process. In their view, it is cumbersome and puts too much burden on preparing the budget and reporting actual results against it.

 

Others embrace the budgeting concept and have their leadership team involved in preparing the annual budgets for each functional area and the company. The monthly results are measured against the budget and variances are analyzed to improve performance. Entrepreneurs who adopt Pay for Performance use the budgeting process to establish performance targets.

 

The Budgeting process could be used by Entrepreneurs to effectively manage performance. You might want to consider that!

 

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