Paro Answers Your Toughest Finance Questions - This Month: The Best Time to Start Your 2018 Budget Exercise

Posted on in Vendor Spotlight, Product and Service Solutions

Q: When is the best time to start my 2018 budgeting exercise?

A: November! Many businesses wrongly assume that they should start planning their budget for the new year in late December (or January). In reality it is critical to forecast your year-end net income as soon as possible so that you can make spending decisions over the last six weeks of 2017 to minimize your taxable liability.

It's also more beneficial to start reviewing your 2017 financials NOW to evaluate where your budget was on and off base. These insights will drive a more accurate 2018 forecast and enable ample time to quantify various scenarios before locking down your official goals by January 1.

Final tip: Make sure that you load your 2018 budget into your accounting platform so that you can evaluate your variance to budget each month...starting in January!

Everyone could use a little free advice. Paro is an exclusive network of highly vetted, on-demand financial professionals. They match businesses with the top two percent of bookkeepers, CPAs, financial analysts, and CFOs at affordable prices.

Click here to ask the Paro folks a question, and they’ll reply to you via email.