Quick, what pops into your mind when I say, Budget? Oh… I hear a lot of groans, but nothing specific. When I hear Budget, I feel the same way. Now, I know as the president of a planning software company, I shouldn’t have that reaction, but I am human. Even with the best tools, the fact remains that all businesses struggle with the same issue: balance. How do you maintain balance between growth and earnings given the costs associated with obtaining new business?
Times are strange. We haven’t been in our Plansmith offices together since March 16th. That’s over a hundred and sixty days – it feels crazy. But like with anything else, we adjust and move forward to reach our goals, but the plans for getting there have definitely changed.
We still want to get together with everyone. We still want to talk about what works, what doesn’t, and how things are going. Even though we can’t meet face to face at our Schaumburg offices this year, we can still come together virtually!
We have some exciting news! Our first installment of Plansmith’s Client Spotlight Series is here. Our intimate spotlights are designed with you in mind. You’ll hear firsthand from our guests as they share their real-life experiences with planning, budgeting, managing risk, and making strategic business decisions.
There’s something about summer that always represents freedom to me. It could be the Fourth of July resonating past the day of, or it could be the warm weather and carefree attitude that comes with it. Maybe it’s the road trips we take and barbecues we host with friends and family. Maybe it’s the trips to the pool or the beach. Maybe it’s the general sense of enjoyment that we try to soak up before the weather gets crisp again.
If COVID-19 has taught us anything, it’s that plans change.
For example, I had a cruise booked and paid for, including excursions to play with sea turtles and visit Mayan ruins this spring. Two of my close friends and I were set to venture from Tampa to Cozumel, Belize, and Honduras – live our best tropical lives, if you will. We were supposed to set sail April 19th and return April 26th.
As Plansmith’s ‘budgeting software’ evolved from its onset in the early 1970s, it became referred to as a ‘profit planning model.’ This distinction was made because it was much more than just balances on a spreadsheet or basic historical trends cast forward for the next year.
The world is turned upside down and inside out as we confront the unexpected challenge of a pandemic. None of us has been here before and confusion is rampant. Yet, as business leaders expected to carry on for the survival of our companies, the World War II expression, Keep Calm and Carry On, seems applicable today.
At Plansmith, we communicate with hundreds of financial institutions like yours across the country who are affected by this crisis. We understand that you face even greater challenges ahead as you try to adapt. We know you have to assess the financial impact of lost wages, increased unemployment, low interest rates and a fragile economy and we ask ourselves, “How can we help?”
Everyone probably has their budgets in place for 2020 by now. And now comes along the Coronavirus and messes everything up. The Fed has already lowered rates by half a point. So, now you’re scrambling to figure out how this will impact your 2020 plans?
Seems like you have a few choices:
I know my numbers, but how do I communicate them to others within my organization?
It’s a valid question that Plansmith fields regularly from our clients. We’ve got some answers for you.Everyone relates to numbers, no matter who you're talking to, but not everyone reads them in the same way. So, how do you make the most out of your conversations with everyone who needs to relate to the same numbers?
Most of us have been building annual budgets forever. First on paper spreadsheets, then with electronic spreadsheet like Excel, and now with software budgeting tools that amount to little more than more convenient spreadsheets. But a budget is typically all numeric built with trending and last year’s information. Usually the CEO provides a growth and earnings expectation and we build the budget to make the math work. If you have a system that can also provide rate risk analysis and draw detailed data from your core system, you really have a great system. So, what’s the problem?