“A budget is telling your money where to go instead of wondering where it went.”

-Dave Ramsey

No matter how big or small your business is, it’s important to have a financial planning tool!


Why is it important?

  • An organizational budget provides a benchmark comparison to actual results.
  • It is a performance measurement tool that will allow business owners to regularly assess what IS and IS NOT going as planned throughout the year.
  • Management of expectations about future programming and activities is easier. You can make assumption based adjustments and see the impact on your overall finances.
  • Examination of the past helps to predict the future. Visibility of your financial performance can allow for growth preparation.


The KEY steps to successfully create a financial planning tool:


Understand your revenue sources and earning potential
  • Know the tracking for what, when, and how much grant and contribution funds you have
  • Sales and Program timing and margin calculations
  • Awareness of vulnerabilities, requirements, and risks associated with current and potential donors


Compile past data information pertaining to expenses and income
  • Prior year tax returns
  • Bank statements
  • Sales activity & past program details


Document and assess your organizational goals, activities, and plans for the upcoming year
  • Monthly Operating Cost Items: Staffing, Operating, Occupancy, Travel
  • Large Asset Purchases: Equipment, Furniture, Technology
  • Activity Planning: Program & Service offerings
  • Funding Sources: Sponsorship & Donor opportunities

Must assign relevant and realistic monetary values to each item.


Perform scenario “What If’” analysis
  • Identify likely fluctuation areas and the potential amount of impact on the previously determined budget amounts
  • Make conservative adjustments to previously budgeted values based on the likelihood of outcome possibilities
  • Document the areas with potential fluctuation for future budget updates if necessary


How to get your business on track for future planning and present evaluation?

Linking your organization’s resources, mission and historic performance is a great way to align the past, present, and future of your organization. NP Finance & Consulting believes that these are the key pillars of creating a successful financial planning tool.


Creating a budget is a great first step. We have included a link to a template to get you started!

Budget Template by Vertex42 LLC


Contact us if you would like to get a better understanding of your organization’s financial future.