Performance Monitoring & Budget Deviation Analysis

When Business Forecasts and Reality Don’t Line Up

The value of Financial Modeling is that it provides the foundation for monitoring actual performance against goals. That said, what happens when outcomes don’t line up with projected goals?

A budget deviation analysis is a further valuable performance management tool for any small business owner. What it does is quickly compare actual performance against projections on a line-by-line basis to reveal if and where there are any deviations.

As simple as this is to articulate, it is more often than not elusive in application. The primary challenge is that this type of financial modeling takes time, requires an objective perspective and the capacity to act on the quality information that it reveals. This is again an area where having access to an outside CFO-level advisor can pay for itself.

Through collaborative performance monitoring and budget deviation analysis between you, your management team and your CFO, you are ensuring that you will have the information you need, when you need it to make quality management decisions. A part-time CFO will challenge assumptions, help to reveal both opportunities and threats, and facilitate further collaboration around overcoming obstacles to attain the desired outcomes.

Did you know?

“…that The CFO Connection offers years of expertise and insight in dealing with business challenges that come about as market forces change, economic conditional fluctuate and internal capacity shifts as strategies are implemented? Part-time CFO services have evolved as an innovative and cost-effective approach to helping small and mid-sized firms more proactively prepare for and manage these dynamic forces of change.”


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