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Budgeted x realized: do you monitor your customers’ profitab
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Сообщение Budgeted x realized: do you monitor your customers’ profitab
The budgeted x realized relationship is one of the most efficient methods of controlling companies' budgets. In this framework, the “ budgeted ” part refers to when your company plans for the future, including spending and revenue forecasts for the next year. From there, actions are defined to ensure that these results are achieved – and “ accomplished ” is established , which is fundamental for good financial management.

However, budgeted x realized also appears when we talk about the profitability analysis of your Phone Number List clients, since to ensure that the projects developed are being profitable and that all operational costs are being covered, it is necessary to carry out constant monitoring of metrics and financial indicators .

Furthermore, updating or renegotiating contracts with clients also ends up being part of this moment, as there may be new negotiations due to an increase in the scope of work or even due to possible crises.

It is essential that you know the profitability of a given client, how much of your profit margin you can give up, how many hours your team invests in projects and how much this represents in cost. In other words, vital information to ensure you are not paying to work.


Check out the topics we will cover in this content about the budgeted x realized report:

Budget management
Why it is important to control what was budgeted vs. achieved
Automated budgeted x realized report
Project and cost management tool

Budget management
As a manager, you must know that there can be an abyss in the budgeted x realized relationship. A lot can happen between what was planned and what is being executed, turning the management of a project into true chaos, causing losses and wasted time.

This is, of course, when you follow this execution. Because it is often the case that companies realize too late that reality can be very different from what was projected.

Of course, there are strategic clients that need to be evaluated beyond financial results. The point we want to address is the need to obtain relevant information in this financial area to make the decision to retain customers , or let them go, consciously.

After the price and scope of the project has been defined and agreed with the client, you always need to keep it in mind to make comparisons between what was budgeted and what was realized to analyze profitability.

12 сен 2023, 18:03
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