Have you ever felt frustration as you try to plan your company's performance for the next twelve months, only to suffer even greater frustration when you try and measure your actual performance to that plan? The source of that frustration is usually a common issue small and medium-sized businesses (SMBs) experience.
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Over the course of my career, I have experienced that while most departments in a company are winding down the year and looking for a little down-time, it is necessary for the accounting department to gear up for a busy time of year. One of the primary activities that should happen before year-end is the budgeting process. Although some view it as a very painful, useless process, the value of budgeting and planning for the upcoming year has proven time and time again to be very beneficial and insightful to the owner(s) of a company.
Sports teams compete against each other and they keep track of the score. They know who wins and who loses, and each player on the team has more statistics on their performance than they know what to do with. Individual sports athletes, like golfers and runners, meticulously measure their performance against themselves and others and use their numbers to find ways to improve.
Is running a business any different? Is there a way to know if you win or lose each day? Each week? Each month? Each year? The answer to all of these questions is yes, and I write about how to accomplish this in