December 17, 2018

Estimates vs. Actual: Was your budget reasonable?

If your company created a budget for the 2018 calendar year, you can now compare its estimates to actual results and determine whether it was reasonable, and, if not, how to adjust it to be more accurate for 2019. Estimates often start with historical financial statements, but internal and external factors may merit adjustments. Think about new contracts, major growth moves and regulatory changes. Above all, find the right method of tracking your financials throughout the year so you’re working with up-to-date data.