Episode 133

6/22/23

Topic: Budgeting Mistakes & What to Do Instead

Guest: Brian Post, CPA, managing member, PCO Bookkeepers & M&A Specialists

The common misconceptions and mistakes PCOs make around budgeting
Why you should reference your budget — not revise it over the course of the year
How Donnie's approach to budgeting has changed over time
Why a standard chart of accounts is so important
Why you need timely reporting showing budget vs. actuals
Where to start with the revenue budget, including recurring revenue, historical attrition rates, annual average customer value and time period sales typically occur
The rule of 78 and how it comes into play with pest control budgeting
Why some companies hit sales goals but not revenue goals
Brian's approach to the labor and material budgets
Why labor and sales are most important for smaller firms
How to approach the sales and marketing budget
Why you must know your cost per sale and cost per lead
The importance of having a process to review your budget with managers