FP&A for Startups: Budgets, Forecasts and Board Reporting
This guide is for CEOs and founders who need a planning process the board can trust. It covers how to set the annual budget, keep a rolling quarterly forecast, explain the gap between plan and actual, and report to the board in a way that surfaces problems before they become surprises.
What's in the guide
- Annual planning: turning strategy and targets into a budget the company can run against
- Budgeting approaches and how far each department should be involved
- The rolling quarterly forecast and how it differs from the fixed annual budget
- Variance analysis: comparing actual results to budget and forecast, and explaining the drivers
- What belongs in a board package, and how to order it so the key issues come first
- Who owns which part of the plan, and how finance works with each department to build it
- How to flag risks early instead of waiting for the board to find them
- How the budget, forecast and board package connect, so every number traces back to the same model
Questions this guide answers
What is the difference between a budget and a rolling forecast?
The budget is the annual plan you commit to at the start of the year. The rolling forecast is updated each quarter to show where the year is actually heading, so you can act on the gap.
What is variance analysis?
Variance analysis compares actual results with the budget or forecast and explains why they differ. The guide shows how to turn each variance into a clear explanation for management and the board.
How often should a startup reforecast?
The guide uses a rolling quarterly forecast. Each quarter you update the outlook for the rest of the year based on actual results, instead of waiting for the next annual budget.
What should a startup board package include?
The guide covers how to build a board package that gives directors the real picture and flags problems early, rather than one that only reports good news. The aim is that the board hears about a miss from management first, with the cause and the plan to fix it.
Who should be involved in building the budget?
Finance runs the process, but department heads need to own their numbers. The guide covers how to bring each department into planning so the budget reflects how the business actually operates.
How Strativ helps
Board reporting is where a founder's credibility with investors is built or lost. Mark Sue spent his Wall Street career as a Managing Director at RBC Capital Markets in equity research, IPOs and M&A, and Strativ clients have raised more than $500M. Strativ sets up the planning calendar, forecast model and board package so your numbers hold up to investor scrutiny.
Request the full guide for the complete one-page reference, or book a call to talk through your situation.
