Budget & Capacity Plan Post-Rollover Finalisation

When the financial year rollover is finished, the next step is to finalise your Budget & Capacity plan. 

NB* This guide is tailored for users who created a new Budget & Capacity plan during the rollover. 

It is assumed that users completed pre-rollover housekeeping. 

If you have mapped your team data during the rollover process, the Revenue Budget for each team will include:

• Revenue Billed in Previous Financial Year: YYYY
• Revenue Lost: YYYY Revenue that will not be invoiced in the YYYY Forecasted Year
• Revenue Won: New revenue that you will invoice in the YYYY Financial Year
• Overhead Allocation: Business Overheads

FAQ - What happens during the financial year rollover process?

Go to Plan > Budget & Capacity

If you have more than one team, repeat the following process for each team.

Revenue Budget tab

1. Select a team in the left panel and click on 'Edit details'.
   
   
    
2. Enter the annual CPI rate (if the rate is unknown, use an estimate). At a minimum, businesses should increase their price each year to cover inflation.
3. If your business plans a separate revenue earning division e.g. Bookkeeping or Advisory, split previous revenue billed, revenue lost and revenue won across each division. 
   IMPORTANT: When you assign a budget to a revenue earning division, there must be corresponding team members in the relevant division in the Team Capacity tab. This is required to correctly allocate the budget. 
   
   
    
4. Add a revenue growth goal for your team. Choose between a growth percentage or revenue growth value. 
5. Optional: Record an overall growth target percentage for your team. 
6. Optional: Pre-filled business overheads may include administration salaries. Separate annual administration salaries from business overheads under the overhead allocation heading. 
7. Review your finalised budget and click on 'Update'.
   
   
   
   Go to the Team Capacity tab
8. Your team members have been pre-filled based on the 'Likely division' in the production team (see Plan > Team Structure). All you need to do is click on 'Allocate Budgets' to distribute the revenue budget to each team member. 
   
   Repeat this step if you have team members assigned in both the Tax & Accounting Team and Bookkeeping Team. 
   
   
   
   NB*  The budget is proportionately assigned to team members based on revenue capacity values.
   
   
   
   Go to the Team Budget tab
   The next step is to distribute the budget across each month in the financial year. 
    
9. Click on 'Distribute budget'. Choose between a seasonal or linear budget distribution and click on 'Distribute'. 
   
   The YTD budget in the FAB5 dashboard is dependent on the totals in the team budget. if this is blank, no values will appear in the FAB5 dashboard. Refer to the FAB5 screenshot at the end of this page.
   
   
    
10. The total distribution will align with the budget values in the Team Capacity tab. You can manually adjust individual budgets across each month by clicking on the 'edit' icon. 
    NB* If you edit monthly budgets, the total budget must still match the budget allocated to the team member. 
    
    
    
    Go to the Team Summary tab
11. Review direct expenses and assign values to each division if relevant. Click on the 'edit' icon next to the 'Direct Expenses heading to update the values.
    
    Review your team's capacity and gross profit analysis to make sure your team is sitting within the benchmark. Assess spare capacity and consider hiring decisions for the upcoming year.
    
    
     
12. Click on the 'Business wide summary' button to review your overall results. If you have low or negative capacity, it is time to determine your next hire to ensure your team can complete the work throughout the year while maintaining client service standards.
    
    
    
    
     
13. Congratulations! You are now ready to complete your FAB5 data entry for the new financial year.