- Avoid carrying forward expenses from prior years.
- Adopt the “blank page” mindset. For each expense, ask yourself whether it is necessary.
- Remember that each expense should be related to an activity, volume consumed and a price.
- The budget should follow the rates and conditions recently negotiated by the sourcing teams. In other words, it should reflect the savings from those negotiations.
- Don’t budget with bundles. Each budget must have its reason and due business justification. Keep in mind that the «other» ledger accounts of each family of accounts will continue to be blocked.
- Renegotiate contracts that are considered fixed costs. That way, it is possible to include flexible alternatives in the event of significant changes in sales volumes.
- Try to maintain the efficiencies achieved in the operating standards during the pandemic over the last two years.
- Keep in mind that all types of expenses must be subject to review. We have learned that there is always room for optimization.
- Remember, each expense must strictly comply with defined policies and standards. For instance, the set of rules used when booking and planning business trips.
- The degree of details and precision in which the process is carried out will help make the variations and explanations needed in the deviation tool be less or easier to document and manage.
| Colombia | USA | Panamá | Haití | Rep. Dominican | Surinam | Guyana Francesa | Antigua | Dominicana | Puerto Rico | Guatemala | |
| Exchange Rate ($/USD%) | 3700,00 | 1,00 | 1,00 | 94,86 | 59,66 | 22,99 | 0,81 | 2,70 | 2,70 | 1,00 | 7,99 |
| CPI | 3,99% | 2,34% | 0,50% | 19,00% | 4,25% | 40,49% | 1,94% | 2,01% | 2,00% | 2,48% | 4,53% |
| GDP (%) 2021 (Var. %) | 5,15% | 6,39% | 12,05% | 1,00% | 5,48% | 0,68% | 5,81% | -2,99% | -0,39% | 2,50% | 4,50% |
| GDP (%) 2022 (Var. %) | 3,55% | 3,52% | 5,25% | 1,00% | 4,73% | 1.53% | 4,20% | 11,87% | 5,84% | 0,70% | 4,00% |
| IPP 2022 | 3,00% |
Source: Bloomberg.
Schedule to plan your budget for 2022.
Review, optimize and adjust your budget taking into account the dates established by the company:
- Delivery of expenses for the Design and Service Areas: September
The corporate vice presidencies must deliver both expenses and the region’s corporate expenses for each of the companies where they take place. The first ones will be input for the P&L of the companies and the second for the P&L of the regions. Regarding the latter, the regions will announce the deadlines established in each country.
On that date, the other operating income / expenses and financial income and expenses must also be delivered.
The region’s income, costs and expenses will be determined by each region according to the economic dynamics of the country. They must be aligned with the P&L upload date in the consolidation tool. If you have any questions, contact us through the link found at the end of this communication
- P&L upload to the consolidation tool: October
In the financial consolidation tool, the upload process will be done by company up to net income. To be able to proceed, prior approval by the corresponding region’s vice presidency is required.
Each region will determine the deadlines to carry out the activities that lead to the end result for the 2022 budget.
Have any comments or concerns?
If you have any comments or concerns related to either the tool, the process, or the information, you can contact the financial team in charge of leading the development of the budget in each of the countries, regions, or departments. You can also go to the following group: Costs and Public Budget, on Teams, in the Budget channel, by clicking on the following link:
