Hard to believe that October is just around the corner, with many non-profit finance teams heading into another busy planning cycle.
For our 30 June year-end clients, this is the lead-up to reforecasting. For December year-end clients, it marks the start of the next budget cycle.
In both cases, early preparation will help keep the process focused and timely for your Board and management level decision-making.
Check out our handy tips below for a smooth process:
1. Lock in timing early: Work with your Purpose Client Manager to book budget or reforecast consultations. If Board or Finance Committee dates are coming up, let us know early so we can align with your approval timelines.
2. Gather key inputs: Involve the right leaders to gain input early. Start identifying the main changes that may affect the numbers, including funding changes; staffing movements and recruitment plans; program changes; growth; one-off projects and capital expenditure.
3. Focus on key drivers: Keep the process centred on the major financial assumptions, risks and decisions.
4. Build in current cost pressures: Consider CPI and cost pressures. International events are still driving up inflation. This cycle, pay particular attention to wages, Award changes, CPI, supplier costs and broader operating pressures.
5. Check workforce assumptions: what’s ahead in terms of your staffing? It's time to think through recruitment, role changes, resignation/termination and major periods of leave.
A well-planned budget / reforecast process reduces pressure later and gives Boards better information, enabling more empowered decision-making for the year ahead.
