A new year is officially upon us and with that comes the perfect time for any business owner to assess and evaluate their company—and goals. New chapters can sometimes introduce new opportunities as well as new threats. That’s why business planning and smart fiscal budgeting disciplines are key. Traditionally, business strategic planning takes place once a year, and attempts to set a business strategy for an extended period. Of course, the pandemic taught business owners that in a volatile business environment it’s extremely unlikely that a plan that is only updated once per year is sufficient to guide every strategic decision that CEOs will need to make over the next twelve months.  When you assess where your business stands today, then develop budgets, financial models, tax strategies, and cash flow forecasts, you can be ready for any roadblocks and adjust as you pursue your goals.   An effective business planning process should aim to help your leadership team understand the company’s strengths, weaknesses, opportunities and threats. Simple steps to planning include:

1. Assess your 2022 goals. Where do you want to go and why.
2. Review your market analysis/industry analysis. Where has your industry been, how has it changed, forecast for where it’s heading.
3. Preform a competitive analysis to determine who and what you’re competing against for customers and market share. 
4. Detail a 12 month sales and marketing plan to understand how you’ll reach your audience and your projections for why your specific sales and marketing strategies will ensure you’ll meet your 2022 goals.
5. Assess financial information data including sales forecasts, anticipated expenses; budget for expenses, cash flow analysis, and profit and loss from the last twelve months.
6. Outline what results the organization is committing to deliver in terms of goals and objectives. 
7. Create a road map of how and when the results are going to be delivered. Who is responsible for each portion of the plan and how will you measure, monitor and pivot if plans and goals need to change.

Creating a Budget to Match Your Planning  

If there’s anything the pandemic has taught us it’s that curveballs can hit your business at any given time and it’s crucial to have safety nets, emergency funds and savings set up that give your company a life jacket in the storm.

In addition, budgeting just makes perfect sense to be financially prepared as to how the future of your business’s finances will look. It requires examining what happened last month, what happened three months ago and what this month last year looked like — then using that information to make wise financial decisions for the months and years ahead.

Carve out plenty of time to work through your business budget.  You will need to have access to important financial information to help.

Estimated revenue:  This is the amount you expect to make from the sale of goods or services. It’s all of the cash you bring in.

Profit:  Profit is what you take home after deducting your expenses from your revenue. Here you’ll plan out how much profit you plan to make based on your projected revenue, expenses, and cost of goods sold. If the difference between revenue and expenses is not on par, you need to rethink your cost of goods sold and consider raising prices.

Putting “Pen to Paper”

The best way to truly plan your budget is working with a CFO or financial advisor/consultant on adding the above calculations onto a spreadsheet where you also have prepared other foreseen costs.

These costs can include your personal plans for retirement, investments your company needs to make technology or marketing-wise, the status of your working capital reserves or the need for a lump sum of money to grow your business. Moreover, this is where you prepare your “safety” fund; stability comes from these prepared safety nets!

Your financial go-to should then work with you to plan for the profit you’ll need to generate the sufficient cash flow to maintain all these factors and budgets. This will then lead to preparing the number of sales your product or service will need to undergo to meet this net income.

Listen to the Numbers

At the end of the day, data doesn’t lie— numbers ultimately tell you the big picture. If they’re not adding up, it’s time to take the proactive steps and cut back on the projects, the talent or expenses you can live without. If your departments are spending too much, work with their leads to see how to cut the right corners.

Again, work with your financial support team or advisor on what exactly can be cut this year— exactly how much can you tweak your gross margin?

You’re Not Alone

As a CEO or business-owner, you don’t have to figure out your 2022 business planning and budgeting on your own. We mention throughout this piece the pivotal role your financial department plays— they, after all, are the number interpreters.

If you need a guide, consultant, advisor or part-time CFO, look no further than AETucker Consulting. We work with business owners and management of small to midsize privately held companies to develop and implement strategy, improve cash flows, increase company value and provide successful business transitions. 



The strength and financial health of your business depends on whether you have a tight grip on your finances. Make sure you carefully manage:

  • expenses and bills – pay quickly to ensure goodwill
  • invoices – chase all late payers
  • Cash flow– ensure you have a health flow of cash and reserve cash
  • taxes – file your returns and pay on time, every time.

Take a moment to review this check-up check list. Once complete, if you have questions, need guidance or a sounding boards for some tough decisions, reach out today.

Andrew Tucker, CPA, CGMA, MBA l Owner, AETucker Consulting, 704.651.2216 l andrew@aetuckerconsulting.coml www.aetuckerconsulting.com

Well, it’s that time of year for business owners to consider doing a Mid-Year review and what a year it’s been!  I don’t know how or if your business has been affected by COVID-19, but many businesses have been significantly impacted.

What is a Mid-year review?

According to John McAdam in his article in Wharton Magazine, the purpose of the mid-year business review is to monitor business performance, create solutions to make more money, and provide guidance for leadership via communication with, and for, your team.

For those of us who more or less academically inclined, it’s time to stop and catch your breath long enough and take an objective look at your business – how was the first half of the year and how do you expect the second half of the year to be? A mini Strategic Planning session, if you will.

A Mid-year review involves looking at all aspects of your business including:

  • Financial results – How did they compare against budget? How are your ratios and KPI’s vs. expected results? Most importantly, how is you Cash Flow?
  • HR – When was the last employee survey taken? Are your employees working well together? Is turnover at an acceptable level?
  • Sales & marketing – Has revenue met your expectations? Have you identified why variances exist? Is your revenue mix in line with your goals or should you make some modifications to your marketing efforts to focus on higher ROI products/services?
  • Operations – Are your products/services being delivered timely? Have your margins changed/costs increased (i.e. service & installation costs)? Have quality or customer satisfaction changed?

Lisa Wood from New Sprout Media asked the quintessential question in her blog – Are you on track?

You have goals, right? How well are you doing relative to your goals? I can’t think of a better way to frame the reason to do a Mid-year review.

According to John McAdam in his article in Wharton Magazine, a Mid-year review includes the following:

  • Evaluate performance
  • Reallocate resources to better achieve goals.
  • Make more money than you would have otherwise.
  • Take stronger corrective actions than you would have without a mid-year review.
  • Provide leadership for your team—too much silence taxes milestone goals.
  • Offer focus for your team.

John points out that taking time to do this is essential and, I would add, one of the most rewarding and enlightening strategic exercises you can do for your company.

Daniel Dreher points out in his article that you can achieve better focus and reap the following benefits:

  • Reviewing now provides more time to implement changes.
  • You can act while other businesses are procrastinating.
  • You probably have a good idea of how the year is going.
  • A review offers an opportunity to re-grip the reins.
  • Nothing good comes from waiting for more numbers.
  • Opportunities may exist now that will disappear later.
  • There’s no better time to re-energize employees.

Daniel adds that this exercise will help you focus and put your company in a better position going forward hopefully with no more pandemics to deal with.

One critical line of questions I’ll add is don’t forget the What, Who, Where, When, Why and How questions.

All businesses need to plan for contingencies, but I don’t think any of us could have possible planned for COVID-19 and the disruptive force it has turned out to be.

As with any exercise in planning, make sure you plan the discussion/meeting upfront and allow sufficient time and input to have a great result. Contact me, Andrew Tucker, for help with this process or other aspects of your business. I can be reached by e-mail at andrew@aetuckerconsulting.com or by phone at 704/651-2216.

When you think about your business in five years from now, what do you see?  What do you see in ten years or even next year?

  • Is your revenue growth and profitability on track to take your company to your next milestone?  
  • Are you forecasting and achieving the results you really want?
  • What are your growth goals and how will you fund them?

If you find yourself facing uncertainty to some of these questions – you are not alone.

All businesses can benefit from a guide – an advisor providing higher level financial and operational advice that you may not be getting from your current staff or tax preparer.  A fractional or outsourced CFO has seen similar issues you face in other businesses.  They walk alongside you, helping you navigate the road ahead so you can maximize opportunities and reduce risk along the way.  Even if you don’t feel you need nor can afford a full-time CFO, that guidance exists by outsourcing your financial leadership role.  If you’re unsure how a fractional CFO can help your company, consider these five ways a CFO can provide immediate value and results.

Improving Profitability
People, processes and technology all link to the ability of a company to be profitable. A CFO will identify Key Performance Indicators and benchmarks; and build methods to track and report them consistently so you can better track and then improve profitability. By analyzing your employee productivity, monitoring redundant tasks, controlling costs, maximizing technological functionality and initiating profitable pricing strategies, you can see improvements to the bottom line.

Managing Cash Flow
A CFO will put an effective cash management system in place. By managing the cash cycle, the company improves collections, pricing, and terms; all adding to increased liquidity. This includes managing capital, debt obligations, and ensures the ability to invest in new projects. A CFO can create a solid forecast, so you avoid being blindsided by the cash flow problems that accompany rapid growth. Cash flow projections prepared by the CFO provide a means for the management of cash, which is the lifeblood of a company.

Providing a Sounding Board for Decision-Making
An experienced and effective CFO brings financial insights and leadership to help the company maximize profits by increasing cash flow.  By using financial data and insights, the CFO will provide clarity on where to best make investments, expand the business, roll out new products and/or service offerings— all essential to maximize growth potential. A CFO can provide objective and expert financial advice while building clarity around goals and action-plans to forecast and meet those financial goals.

Funding Growth
An outsourced CFO usually has developed and maintains strong relationships with lenders.  This is advantageous for business owners seeking to obtain a loan to fund growth or extend a line of credit. A CFO brings knowledge of how to build your business lending profile by educating you about factors that banks consider when seeking a loan.  With the knowledge of different lending options, a CFO can help you compare all options and expand your banking relationships to prepare and secure the right financing needed to help you grow your business.

Mitigating & Managing Risk
Risk-taking is a key part of the growth of any business.  But not understanding the risks your company faces can bring your company to its knees. CFOs, given their expanded role in establishing and executing strategy, have become well positioned to help ensure that a company’s risks are identified, assessed, managed, and integrated into the corporate strategy.  A CFO has a keen understanding of the scope of risks that the organization faces by identifying the risks and classifying them by risk type (financial, compliance, debt, liquidity, operational and security risk.) A CFO will evaluate each of the risks, creating estimates of the probability of an occurrence for each as well as an assessment of risk impact. They can provide your organization with processes and procedures for reporting of risk exposures that can act as early warning signals.

Your Trusted CFO
There comes a time for many companies when you need financial advice and services over and above what you are getting from your staff.  AETucker Consulting serves owners and management of small to midsize privately held companies to develop and implement strategy, improve cash flows, increase company value and provide successful business transitions when the time comes. 

Where are you in your business journey? 

Let’s start the conversation today on ways I can provide strategic financial guidance and help your business grow.  Let’s schedule a discussion that convenient for you. Schedule–>

Andrew Tucker, CPA, CGMA, MBA

AETuckerConsulting, LLC,
704-651-2216
Andrew@aetuckerconsulting.com