Week in Review: Turbulent Times Call for Sound Budgeting Practices

Navigating choppy seas

Choppy seas on Wall Street this week could be leaving some feeling a bit queasy as concerns over such things as labor costs, economic and political turbulence abroad, and ongoing declines in oil prices have created a volatile market. Fortunately, one thing CFOs won’t need to worry about this year is the excise tax on Cadillac health plans, which has been delayed by Congress until 2018. These good and bad surprises can upend budgeting, making it difficult to devise an accurate financial plan.

For early stage, venture-backed companies that want to both enable and manage growth, following straightforward guidelines during the budgeting process and measuring results along the way can lead to positive results that both the company and its investors are looking for. At the same time, companies shouldn’t be afraid to take a disruptive approach to how they budget—expanding their focus from earnings and short-term numbers to long-term growth and value creation. Transforming your budgeting process can set the stage for accelerated and sustainable growth.

And speaking of the stage, the San Francisco Ballet, America’s oldest ballet company, plans for uncertainty using modern technology and data analytics—ensuring they get the most out of every ballet performance.

The roundup below highlights the key issues we saw covered this week, so read on for your first CFO must-reads of 2016.

Don’t Trade In That Cadillac Just Yet

Companies offering Cadillac health plans with benefits that exceed $10,200 for individuals or $27,500 for families were facing a 40% excise tax on those plans this year. That is, until Congress voted to delay the tax until 2018. (via Wall Street Journal)

Best Practice Budgeting

Having worked with hundreds of early-stage companies, Bessemer Venture Partners offers sound advice for best practices in budgeting. Bessemer recommends a budget with at least a 50% probability of success that includes sales and marketing plans, revenue budgets and forecasts, cash budgets and forecasts, and Wall Street guidance—and the VC firm believes these best practices should enable fast-growth companies to hit their budget targets. (via TechCrunch)

Want to Be Disruptive?  Start With Your Budgeting Process

Don’t fall into the same trap that so many early-stage companies do during the budgeting process. Following these five guidelines, finance teams can set their organizations on a path to long-term growth and value creation. (via Adaptive Insights blog)

San Francisco Ballet Goes Modern With Tech

San Francisco Ballet’s CFO, Kim Ondreck Carim, discusses how she has implemented technology and data analytics to turn financial planning into a fine art. (via Wall Street Journal)

What do you like to read as a modern finance leader? Tweet your top picks to @AdaptiveInsight, and read next Friday’s edition to see if your story made our list of CFO must-reads!

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