The end of Q1 2020 is coming quick. Looking back, how did your 2019 budget do, and how can you improve this year? Have you reviewed your 2019 results and implemented new strategies for 2020? If not, its not to late. Here are a few key areas to look at and make some changes.
Did you hit your year-end forecast?
If you didn’t, re-evaluating your year-end forecast is where you should be starting 2020. An accurate forecast will determine where your budget begins and plays a crucial role in determining expenses. If you missed your 2019 year-end forecast, determine where you can get rid of any expenses that were not required going into 2020. Lastly, make sure you are paying attention to current performance and trends to determine if your 2020 forecast is accurate.
Inspect and Compare Details
If you did hit your forecast, great job! Now let’s dive into the details to see where improvements can be made this year.
Looking back at your 2019 budget, you should analyze more than just year-end variances. Breaking down each month can help determine areas that may get overlooked in summaries. Finding small details to adjust can add up and create big differences.
Key things to look for are timing and preparation issues, budgeted values that have seasonal impact and are averaged, or line items that are budgeted just because they have always been done that way. Making small adjustments like these can add up to big impacts when creating your future budget.
Take Away
Reviewing your budget can be a time consuming and less than exciting process, but plays a crucial role in growing your future.
Atlantic & Pacific management has been serving San Diego’s single and multi-family communities, including condos and townhomes, for over three decades. We’d love to help support your community and 2020 budget. You can contact us today for a FREE ANALYSIS and learn more about the ways in which we can support your HOA. Plus, you can GET ONE MONTH FREE when you book your new 12-month HOA management contract with us by March 31st, 2020.