Proactive Versus Reactive Budgeting for Reliable Decision

Do you know your business’ monthly expenses? There is a big difference between a general idea of finances and down to the minute accuracy. The impact of COVID-19 on small companies will grow for years to come; prepared versus unprepared and proactive versus reactive. The resounding theme throughout the business community is those with a proactive budgeting system had better outcomes. The negative effects of reactive budgeting cause major economic shock.

Reactive budgeting

What is reactive budgeting? Reactive budgeting is decision-making in response to circumstances. Decision-making based on knee-jerk outdated records trigger a cascade of loss. Bills unpaid, partially filled spreadsheets, and data entry fatigue are reasons that drive organizations to seek better cash flow management solutions.

As seen with the recent COVID-19 outbreak, most reactive business owners thought they could ride out the pandemic. Unfortunately, many did not have a positive result. While some organizations closed operations temporarily, other closures were permanent. Of the small businesses that remained operational, those with less financial fragility continued operations either making money or preventing loss. Concurrent data with precise expenses prepares a company for unexpected financial pivots.

Proactive budgeting

Is it too late for proactive budgeting? Fortunately, it doesn’t take a pandemic for business owners to understand the importance of proactive budgeting. Business owners, just like you, want reliable and effective cash flow management systems. Proactive budgeting includes real-time visibility. Our clients want to be more confident about their futures and abilities to survive a crisis. Proactive budgeting ensures a reliable report of financial health.

Even in times of global crisis, your business can experience an explosion of unexpected growth. As your business prepares to meet demands, a proactive cloud-based financial solution takes the guesswork out of decision-making. Businesses with financial remote capabilities moved through complex stages of the pandemic with little disruption to the supply chain. Business owners that outsource cloud-based financial management maintain control of processing, reporting, month-end close, and planning. Real-time accurate data is the key to a continuous process of decision-making.

If your business has piles of unorganized data, you could be at risk for the demise of cash flow management. Business growth and productivity rely on accurate back-office record keeping. Cloud-based capabilities and real-time data lead the businesses of today from a climate of uncertainty to unwavering survival. Our company understands the complexities of business’ financial needs. We offer premium remote ERP solutions, like Sage Intact, to customize your organization’s specific needs. Our team can help you plug any holes, identify threats, and brainstorm solutions.

Heal Accounting is a tech-savvy outsource financial department with Growth and Profitability Advisors to set a reliable cash flow management system. Contact Heal Accounting today.