Planning to Achieve Budget Goals:
It is insufficient for an organisation or a project team to simply set budget goals and expect management and employees to work in the same manner as normal in order to achieve the new goal.
Budget goals must be accompanied by planning to assist staff to meet the new targets.
Planning may include:
- The establishment of new policies and procedures designed to increase efficiency and productivity in the work place
- Review of current financial arrangements (refinancing)
- Review of current terms of trade (to extend times for accounts payable, and reduce times for accounts receivable)
- Introduce more vigorous debt management procedures
- Review commission levels
- Investigate alternative suppliers to ascertain where savings can be made