As we gear up for EOFY, one thing is crystal clear: a strong budget doesn’t start with a spreadsheet. It starts with a story, a clear, logical plan about where your sales will come from, and how that translates into real, sustainable profit.
Now, whether you’re working off the calendar year or the financial year, the principle is the same. Around this time, many business owners are setting their eyes on bigger numbers. A 20% uplift sounds attractive but unless you can break that number into its core components, you’re not budgeting, you’re guessing.
The Trap of “More Sales”
Let’s take an example: You did $10 million in sales this year. You’re targeting $12 million next year. Ambitious, sure.
But do you know:
• What products or services will make up that $12M?
• Who exactly you’ll be selling them to?
• And if relevant, where those sales will come from (regions, segments, verticals)?
These three elements (What, Who, Where) are crucial. They turn a dream into a plan. And a plan into a forecast you can actually manage, measure, and course-correct.
Reality Check on Liabilities
This one’s easier.
If you’ve been doing regular reviews, every liability on the books should be something you actually owe. If you haven’t been reviewing? It’s time to make sure nothing snuck in that doesn’t belong there.
EOFY is the reset button. Don’t carry someone else’s mistakes forward.
Why This Matters
One of our clients recently came to us targeting $24 million in sales. They could clearly map out $19 million in known opportunities (specific clients, specific products). The remaining $5 million? We were fine with a degree of fuzziness there.
But if they’d only had $7 million mapped out and were guessing the rest? That’s a red flag.
Your level of certainty should grow with the size of your ambition. Not knowing who you’re selling to or what you’re selling them makes your budget more of a wish than a strategy.
Where an Outsourced CFO Adds Serious Firepower
Yes, listen to your tax accountant, they’re essential.
But also check your internal financials. Review assets, clear liabilities, and build a budget.
Start July with clean data and a clear direction.
EOFY isn’t just about the past year. It’s your launchpad for the next one.
Forecasts Aren’t Fortune Telling
This exercise isn’t about perfection. It’s not a crystal ball. And it’s not a stick to beat your sales team with if they fall short. It’s a compass. A way to identify gaps early. To know where you’re light, where you’re strong, and how to adjust mid-year when things inevitably change.
What To Do Next
As you wrap up this financial year and prepare for the next:
1. Start with your sales target.
2. Break it into what you’re selling, who you’re selling to, and where.
3. Pressure test it. Is 80% of that number backed by real, logical detail?
4. Bring in an external set of eyes, like an outsourced CFO, to sharpen the plan.
5. Use that intel to drive confidence, clarity, and accountability across the business.
EOFY is a line in the sand but what matters most is how clearly you can see the path on the other side of it.
Want help making sure your next 12 months are grounded in clarity and confidence?
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