Hey Reader,

You know what drives me crazy?

When people talk about departmental budgeting like it's all about the spreadsheets.

I mean seriously... most finance pros obsess over formulas and formatting while ignoring the actual hard part:

Working with people.

After building financial processes for dozens of companies, I can tell you this: departmental budgeting fails because of relationship breakdowns, not calculation errors.

Your fancy Excel model means nothing if your Marketing Director ignores your emails.

So let's talk about the part nobody teaches you in accounting school: how to work with the humans behind the numbers.

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Department heads usually hate budgeting. They see it as a bureaucratic exercise that finance forces them to do.

Why?

Because most finance teams do it all wrong.

We send templates first, have conversations later.

We speak in financial jargon they don't understand.

We ask for detailed projections without explaining why they matter.

Flip this approach.

Start with questions about their goals. What keeps them up at night? What would make this year successful for them?

I always schedule coffee with department heads before sending any templates. This one simple change transforms the entire process.

When they know you care about their objectives, they'll actually engage with yours.

Different departments speak different languages...

Marketing teams glaze over when you talk about EBITDA margins, but light up when you connect financial metrics to campaign performance.

Engineering teams want hard data, not fluffy explanations.

Sales teams mostly care about how budgets affect their commission structure.

Learn to translate finance into their language, not yours.

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Ever sit through a board meeting where the CFO walks through every line item while executives check their phones under the table?

Nobody cares about the 3% variance in office supplies.

Your job isn't to show all your work. It's to highlight what matters.

When presenting budget data to leadership:

✅ Lead with the 2-3 most significant variances

✅ Explain implications for strategic goals

✅ Come with recommendations, not just analysis

✅ Skip the details unless they ask

Executives want financial information that helps them make decisions. Everything else is just noise.

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I've worked with too many finance teams who stay locked in their corner of the office, thinking they understand the business from spreadsheets alone.

That's a recipe for bad budgeting.

Step out of your comfort zone.

Go to marketing's campaign planning sessions. Join product development discussions. Grab coffee with sales reps.

Not to check up on them... but to genuinely understand their world.

The best insight I ever got about cash flow came from a casual conversation with our logistics manager, not from staring at spreadsheets.

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Here's my favorite budgeting hack: make the process valuable for department heads.

Show how accurate budgets help them get resources for their priorities.

Connect financial planning to their goals, not just company targets.

When people see budgeting as a tool that works for them, not against them, the quality of their input transforms.

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Before budget season, create a quick stakeholder map.

For each department, note:

• Who actually calls the shots (not always the department head)
• What they care about most (rarely the budget itself)
• Their communication style (emails, meetings, casual chats)
• Past budget pain points (where they've pushed back before)

This simple exercise helps you anticipate issues before they happen.

I've spent years mastering financial modeling.

But technical skills only matter if you can get people to use the information you create.

Financial knowledge gets you in the door.

People skills get you a seat at the table where decisions happen.

Which department gives you the biggest headache during budget season? Marketing? Sales? IT?

Hit reply and let me know - I read every email.

Till next time,

Josh
Your CFO Guy

Quick note: While I love sharing my finance & accounting knowledge, remember I'm Your CFO Guy, not Your Personal CFO. Everything I share comes from my experience, but each business is unique. My content is educational, not professional advice - always consult with your own qualified advisors for decisions about your specific situation.

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