How is non-financial information used to calculate financial information? What advantages does the inclusion of non-financial information have in communicating tactics to make the financial goals?
Every financial assumption is based on non-financial data. For example, how many employees are on the payroll? What is an average percentage raise you will give this year? Are you going to hire anybody new? If so, at what rate? When are you expecting to get that big insurance refund? When do you pay your property taxes? How much will they be? What will the management bonus be this year? When will it be paid? What interest rate is associated with your loan? Can you get a better rate from another financial institution? If you don’t know, how soon do you intend to shop that?
A budget is nothing more than quantifying your operational business plan for the year. Any fool that says "the accountants don’t need to know that" is going to end up with an inaccurate budget.
Originally posted 2010-01-26 11:54:40. Republished by Blog Post Promoter
Every financial assumption is based on non-financial data. For example, how many employees are on the payroll? What is an average percentage raise you will give this year? Are you going to hire anybody new? If so, at what rate? When are you expecting to get that big insurance refund? When do you pay your property taxes? How much will they be? What will the management bonus be this year? When will it be paid? What interest rate is associated with your loan? Can you get a better rate from another financial institution? If you don’t know, how soon do you intend to shop that?
A budget is nothing more than quantifying your operational business plan for the year. Any fool that says "the accountants don’t need to know that" is going to end up with an inaccurate budget.
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I’m a CPA. I’ve been through this a hundred times.
My medical insurance is around $5K per year and we spend another $2-3K out of pocket, so their medical estimate seems high, but we are a relatively healthy family (knock on wood). My brother’s family has 2 kids, one with ADHD and another with a speech problem – I’m sure they spend far more (3x?) than we do on medical. I’d agree with you the dental costs seem high, but we spend at least $2K/year and our kids are not old enough to have braces yet. Medical expenses vary based on where you live, so it’s not surprising your expenses are lower, but again, this is the point of the study.
How much you choose to buy has no effect on the actual cost. The price per model ends up being similar in most comparable cases.
Go Amber! Great post. I agree with you for the most part. I struggle with balance myself when it comes to social media measurement and ROI. I am a data junkie like many of you. I love the numbers, we need the numbers. However, marketing has always been more than numbers.
Most people manage to grieve without goin crazy or, say, constructing an elaborate bat-themed costume and waging a one-man war against crime