Plan vs. Actual, Part 3: Understanding Variance Analysis

Many businesses, especially the small, entrepreneurial kind, ignore or forget the other half of the budgeting. Budgets are too often proposed, discussed, accepted, and forgotten. Variance analysis looks after-the-fact at what caused a difference between plan vs. actual. Good management looks at what that difference means to the business. LivePlan provides the plan vs. actual data...

By Tim Berry |

Plan vs. Actual, Part 2: Cash Flow and Profit and Loss

Catching trends as they develop A Plan vs. Actual Cash Flow table for the same sample plan shown in Part 1 of this series would show the variance in cash flow and cash balance and how much can change, in the real world, despite good planning. A company needs to adjust to change by keeping...

By Tim Berry |

Plan vs. Actual, Part 1: Implement Your Plan and Keep It Alive

As you review implementation results with the people responsible, you will often find the need to set new goals and make course corrections. Keep track of the original plan and manage changes carefully. Although changes should be made only with good reason, don’t be afraid to update your plan and keep it alive. LivePlan has Planned,...

By Tim Berry |

Cash Is King

In a previous article I talked about business numbers and the critical difference between cash and profits. This article looks at how to plan for cash in a business plan, understanding the critical elements that affect cash flow. You don’t want to be one of those businesses that goes broke even while producing profits. Basic...

By Tim Berry |

Estimating Unknown Expenses

How do you estimate specific costs for a new business? How do you predict expenses? Normally you need some experience. If you have no idea, then you might think again about starting this business. Maybe your team should add somebody who does have experience, and can make estimates. Here is why. In the real world,...

By Tim Berry |

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