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« Video Blog: Adopting a Lean Business Model for a Start-Up | Main | One Final Thought on Small Business Budgeting »

June 29, 2009

Comments

Rita Nzekwe

So then how often in a year can you revise a budget?

Scot Justice

Rita,

Very good question.

One of the reasons I wrote this post is that bad budgets don't help anyone in a company improve performance. And normally, the bad budgets are ignored because they do not give employees reasonable benchmarks to compare actual performance to.

This why you should revise your budget periodically to get it in line with reality.

The frequency depends on how well your previous revisions are as well as how dynamic your company or industry is.

You don't want to drive yourself crazy, and use valuable company resources, continually revising your budget. So quarterly may be best, unless there is a huge bust in the budget that you know can be fixed with small revisions.

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