27/10/2020
The purpose of a budget is to give the company a proper framework to manage, but how do you do it in a state of uncertainty?
We have gathered for you the thumb rules for budget management under uncertainty:
• Raise your head above the water - manage a conservative budget and leave a high cash balance
• Manage more than one scenario (Recommended optimistic, pessimistic and realistic) based on revenues that are the main uncertainty factor
• In calculating income - multiply by uncertainty factor
• Build a budget that includes tracking cash balances
• Monthly ongoing monitoring
• In cases of extreme uncertainty, it is best to postpone expenses expenditure as far as possible
