The finance tasks underpinning a well-run annual planning cycle — from budget kick-off and board strategy session through to final approval and business communication.
July–August: Strategic Foundation
- Board strategy session scheduledDate agreed; pre-read materials assigned to each executive team member with submission deadline.
- Prior year performance review preparedActuals vs budget prepared with key variances explained and lessons learned documented.
- Market context updatedCompetitive landscape, macro trends, and regulatory changes affecting the business strategy assessed.
- Three-year strategic plan refreshedGrowth assumptions, market opportunity, and strategic bets updated for board discussion.
- Executive team alignment session heldTop 3–5 strategic priorities for the year ahead agreed before the board session.
- OKR framework refreshedCompany-level objectives proposed for board discussion; prior year OKR outcomes reviewed.
September: Budget Build
- Budget templates distributedTemplates sent to all department heads with clear instructions, assumptions guide, and submission deadlines.
- Revenue model updatedAssumptions agreed with sales and commercial team; seasonality and pipeline conversion rates applied.
- Headcount plan submittedEach department submits headcount requirements with business case; open roles prioritised and timed.
- Operating cost budgets reviewedDepartmental cost budgets submitted, reviewed for reasonableness, and challenged where appropriate.
- Capex budget preparedAll investment requests assessed against strategic priorities; ranked and prioritised by CFO.
- Board-level budget reviewed by CFOAssumptions challenged; sensitivities tested; key risks and opportunities identified before board presentation.
October: Board Budget Review
- Draft budget presented to boardFull P&L, balance sheet, cash flow, and key KPIs presented with supporting narrative.
- Scenario analysis presentedBase, upside, and downside scenarios presented with key assumptions and sensitivities for each.
- Board challenge completedAssumptions questioned, priorities debated, and resource allocation agreed at board level.
- Revised budget preparedBoard feedback incorporated; revised budget prepared and circulated before final approval meeting.
- Final budget approved by boardBoard resolution approving the budget recorded in board minutes; approved version filed.
November: Operationalise the Plan
- Departmental budgets communicatedEach team lead briefed on their budget with the strategic context behind the allocation decisions.
- Monthly reporting framework agreedWhich metrics are tracked weekly vs monthly vs quarterly confirmed; dashboard owners assigned.
- Variance reporting template preparedHow actuals vs budget will be presented to the board agreed and template built in advance.
- Incentive plans aligned to budgetSales targets, bonus schemes, and OKR-linked incentives updated to reflect the approved budget.
- Budget lock-in appliedAll committed spend authorised; headcount freeze applied to roles not included in approved budget.
Ongoing: In-Year Management
- Monthly reforecast maintainedRolling 12-month forecast updated every month-end; board receives updated view each period.
- Quarterly board reviews heldQ1, Q2, and Q3 performance vs plan reviewed at board level with updated full-year outlook.
- Mid-year replan trigger monitoredIf performance deviates more than 15% from plan, full reforecast presented to board for re-approval.
- Year-end review completedFinal outturn prepared and submitted as the primary input to the following year’s planning cycle.
