Ready to Master Your Budget? Consider These 19 Personal Tips on the Best Time for Planning and Forecasting

When is the best time to prepare your budget? Top industry leaders, including a Director of Finance and several CEOs, share their insights on the optimal moments to craft effective financial strategies. Their strategies range from focusing on Q3 as a crucial period for budget preparation to focusing on continuous planning as the key to long-term financial stability. Featuring advice from 19 experts, this guide will help you elevate your approach to budgeting and forecasting for the year ahead.

Prepare Budgets in Q3 for Success

In my professional experience, I have found that the optimal time to prepare budgets and forecasts for the next calendar year is during the third quarter of the current year. The logic here is three-fold.

First, you are well into the current year, providing a clearer perspective of the present financial performance. Secondly, this timing allows for enough lead time to make strategic adjustments based on the current year's trends, juxtaposed against the following year's goals. Lastly, embarking on this task early ensures we are not rushed during the holiday season, causing undue stress on the financial team.

A specific incident I recall is when we started our planning in Q3 and identified an unexpected trend in our sales data, allowing us to anticipate and budget for the resources required the following year. By the time Q4 ended, we were fully prepared to kick off the new year, and our early projections resulted in a subsequent 15% increase in profitability.

David Chen, Director of Finance, Srlon

Late Q3 Budget Prep Avoids Year-End Rush

I've always found late Q3, around September or early October, works best when I prepare budgets and forecasts for the next year. By then, I'll have gathered solid data about the current year's performance, spotted what's working, and tracked where spending went over or under budget. These real numbers and trends help me shape my planning, grounding the budget in reality rather than wishful thinking.

For me, starting during this window creates space to fine-tune everything. Once I sketch out that first draft in October, I've got time to adjust and adapt as circumstances evolve. The truth is, that business rarely follows a straight line, and jumping in early means I dodge that December crunch when year-end chaos hits full force. Last time I pushed it too late, it felt like chasing a moving target - never again.

So, that early prep work paves the way for thoughtful budget refinements without the last-minute scramble. The extra perspective helps me nail down goals that actually move the needle. This breathing room makes all the difference, setting me up for a strong start to the new year, ready to tackle whatever comes my way.

Scott Cohen, CEO, InboxArmy

Start Budgeting August to November for Growth

I believe the best time to prepare budgets and forecasts for the next calendar year is from late August through early November. Starting in August/September with a strategic growth plan for 1, 3, and 5 years lets you align your vision with actionable goals. By October, you can dive into forecasting and budget needs, ensuring that by December, you're equipped with clear priorities, resources, and budgets for the coming year. This approach means you're ready to launch January with a growth-focused plan and the resources to make it happen, avoiding the typical scramble to start strong in Q1.

This is the process I've followed for my companies for over a decade. It has worked well, resulting in a successful exit in '23. My newest company has grown per our goals in '24 and we're already deep into our '25 planning and budgeting.

Adriana Cowdin, CEO and Executive Coach, Be Bold Executive Coaching

Early Summer Budget Prep for Marketing Success

I believe the best time to prepare budgets and forecasts for the year really depends on your industry. For someone like myself - who is in the marketing and events industry - the annual calendar is cyclical and activity peaks both in the spring and the fall. So, for me the best time to prepare is during early summer when things are quieter.

For example, I use June as the time to plan for the rest of the year and the following year. It gives me the flexibility to strategize - providing a six-month runway to implement and refine budgets and goals - well before the new year begins and without the pressure of year-end deadlines. This time period is also key in the industry for seeking out new proposals to work on to submit for next year's projects. As I have grown in the industry, it's been this proactive approach that has been key in setting me up for success, focused on growth, and feeling prepared to enter into the next year.

Jumi Aluko, Founder + CEO + Lead Event Planner, Jumi Aluko Consulting

Q4 Budget Prep Aligns Goals and Resources

In my experience, the best time to prepare budgets and forecasts for the next calendar year is the final quarter of the current year. The months of October, November, and December provide the perfect window to look back at the financial and operational results from the year that's winding down, while also looking ahead to goals, projections, and strategic plans for the year ahead.

During this time, I gather updated figures on revenues, costs, and other metrics from the current year. These help inform realistic targets for the next year's budgets across all business units. With 3-4 months left, there's still time to course correct if needed before the new year begins. I can pressure test assumptions for growth rates, costs, market conditions, etc. This prevents scrambling to redo budgets in January or February.

Forecasting is also ideal in Q4. We have better visibility into emerging trends that will carry into the new year. Whether it's new product launches, market expansions, cost headwinds, or tailwinds - the signals are often clearest in the year's final quarter. I can factor these into revenue and expense forecasts to align plans and resources.

There's an energy in Q4 as teams are motivated to finish strong. I harness this drive to get buy-in on targets for the next 12 months. Groups are more receptive to stretch goals at this time, compared to post-holiday slack periods. By December, budgets are refined and approved so teams can hit the ground running in January.

Gauri Manglik, CEO and Co-Founder, Instrumentl

October Budget Prep Ensures Control and Direction

I like to start preparing budgets in October. It's a team effort with the leadership crew–especially sales and marketing, who dig into sales projections based on actual data (you know, the stuff we can realistically count on, like deals that are set to close each month).

By November, we pull it all together and bring in the whole leadership team to "pressure test" the numbers. Everyone takes a shot at poking holes in it, making sure we haven't missed anything critical. Then, in December, we finalize everything, get it approved, and roll it out in our annual meeting.

The goal? To walk into January firmly in the driver's seat, fully in control of our direction, rather than winging it from the passenger seat. Plus, we always document the assumptions behind our projections–so when we review it down the road, we remember why we set those targets and can see if our thinking still holds up.

Pete Srodoski, Business Coach, Roll With the Punches

Plan Budgets End of Q3 or Early Q4

For me, there's no such thing as panning too soon. I plan my budgets for the next year toward the end of Q3 or at the beginning of Q4 when I have a clear view of our revenue and expenses.

Planning at this time helps my team and I objectively review what works, what doesn't, and things we can improve on meticulously without the last-minute rush before the December holidays.

I like planning at this time because it enables us to create detailed and meaningful internal and stakeholder reports that communicate our vision for the company. It also allows us to unwind and recharge over the holidays, giving us the energy to implement our strategies effectively the following year.

Wandia Chiuri, CEO, Reactionpower

September Budget Prep Allows for Adjustments

I've found that starting our budget and forecast planning in September/October sets us up perfectly for the upcoming year. It gives enough runway to thoroughly analyze the current year's performance while still leaving time to make thoughtful adjustments before January hits.

What I particularly love about this timeframe is that we have solid Q3 data to work with. By this point, we've got a clear picture of which strategies worked well, where we might have missed the mark, and what new opportunities we should factor into next year's plans. It also means we're not scrambling during the holiday season when everyone's attention is naturally divided.

This advance planning has been especially helpful for our team because it gives us time to make any necessary pivots before we're actually executing the plan. We can hit the ground running in January rather than spending Q1 still finalizing our strategy.

Zachary Bernard, Founder, We Feature You PR

Early Autumn Budget Prep for Proactive Planning

I believe the best time to prepare budgets and forecasts for the next calendar year is in the early autumn, around September or October. At this point, we've gained enough insight into the current year's performance to make informed predictions, but there's still time to adjust strategies if needed.

One key reason why prepping during this time sets us up for success is that it allows us to approach the new year proactively rather than reactively. By planning in early autumn, we can carefully assess our resources, understand our successes and setbacks, and identify emerging trends or opportunities. This foresight not only improves our financial planning but also creates a clear roadmap for our team, ensuring everyone is aligned and prepared for the months ahead.

For a small business where every decision is felt across the team, a well-prepared budget becomes a powerful tool, setting clear expectations and helping us make the most of our resources. By getting a head start in autumn, we're not rushing through crucial financial decisions in December but instead entering the new year with confidence and clarity.

Christopher Wells, General Manager, INCA TRADING & CONTRACTING

September and October Budget Prep for Success

The best time to prepare budgets and forecasts for the next calendar year is September and October. Why? Well, it's right when the kids have gone back to school and before the whirlwind of the holiday season takes over. During these months, there's a unique window where distractions settle down, and you can focus on planning effectively.

By this time, you have nine solid months of data, giving you a more complete picture of trends, what's working, and what isn't. It's the perfect amount of information to start forecasting the upcoming year. Plus, it allows you to spot any patterns and make more informed decisions for the future.

Starting early also means you have time to brainstorm and adjust with your team, rather than scrambling at year-end. You can fine-tune strategies, prepare for possible hiccups, and set more realistic, achievable goals. September and October set you up for success by giving you the headspace and insight to create a clear, intentional game plan.

Jason Holicky, Owner and Marketing Consultant, Holicky Corporation

August Budget Prep Maximizes Q4 Opportunities

When's the Best Time to Prepare Budgets and Forecasts for the New Year? August, Hands Down.

To set your business up for a stellar Q1, August is the ideal time for budget and forecast prep. Here's why this "summer lull" is actually the best moment to organize finances and position your brand for both immediate and long-term wins.

August might feel like a slow month, but it's the perfect launchpad. By preparing budgets and forecasts now, you're ready to hit September with "back-to-school" energy rather than scrambling. Think of it as getting ahead while everyone else is still in vacation mode. With an August plan, you're set to capture early Q4 opportunities and carry momentum into the new year.

Starting in August aligns with shifts in consumer focus toward Q4 goals, allowing you to act on new trends as soon as they emerge, proactively leading instead of reacting.

Starting your budget in August helps you avoid the year-end rush. Holiday campaigns are budget-heavy, especially for big promotions, but with an August plan, you can allocate resources early and clearly see where to invest for maximum impact.

Instead of scrambling through sudden "Hail Mary" budget tweaks in November, every dollar is already accounted for. This means holiday campaigns that run with intention-not desperation. The result? Stronger, smoother campaigns that work with your broader goals.

Here's where August gives you an edge: by preparing now, you set yourself up to thrive not just through the holidays but beyond them. With your budget and goals already outlined, you're able to focus on Q1 initiatives while competitors are still regrouping from holiday burnout. August prep helps you capture new market share that others might overlook in the new year.

This head start gives Q1 a solid push forward, keeping your momentum from Q4 going strong. You're not just surviving the holiday rush; you're set up to capitalize on growth opportunities as soon as January hits.

When you set up your budget in August, you're ready to tackle both the holiday rush and the post-holiday stretch, giving you a strong lead going into Q1. Come January, you're not just easing into the year; you're diving in with a clear, actionable budget that fuels your next big moves.

Kim Grimard, Founder, Moonbadass

Early Budget Prep Avoids Year-End Scramble

As a business owner, I believe the best time to prepare budgets and forecasts for the next calendar year is actually before the high-spending months of November and December roll around. These months are often filled with extra expenses, from holiday marketing campaigns to end-of-year bonuses or inventory purchases. By getting your budget in place ahead of time, you can avoid scrambling at the last minute and make sure you're prepared for the season's financial demands.

Prepping your budget early gives you a clear roadmap for the upcoming year and helps you account for seasonal expenses, like special promotions or staff rewards, without straining your cash flow. It also allows you to make more thoughtful decisions about your spending, ensuring you're staying aligned with both your short-term goals and long-term strategy. With everything mapped out, you can focus on the bigger picture, rather than worrying about last-minute adjustments, and truly set yourself up for success in the new year.

Taylor Kovar, Chief Executive Officer, 11 Financial

QBRs in October-November for Budget Preparation

I firmly believe that conducting Quarterly Business Reviews (QBRs) in October and November is one of the best times to prepare budgets and forecasts for the next calendar year. During this period, we can take a step back and assess the performance of the business against our goals for the year. This allows us to identify trends, measure our success, and understand what adjustments we need to make moving forward.

One significant reason why preparing at this time sets us up for success is the ability to include the insights gained from the year's performance in our budgeting process. By analyzing our results from the last three quarters, we can make informed decisions about where to allocate resources, adjust priorities, and set realistic revenue targets. This proactive approach not only helps us create a more accurate budget but also fosters a culture of accountability and strategic thinking within our team, ensuring that everyone is aligned and focused on our growth objectives for the upcoming year.

Binod Singh, Founder, Cross Identity

December Budget Prep Keeps Predictions Realistic

December is the ideal month to prepare budgets and forecasts for the next calendar year. A focused, 30-day period is often more efficient than sprawling, early-stage planning. I believe that we should be maintaining momentum without the drag of excessive anticipation.

Most of the time, prepping in December keeps predictions realistic and relevant. When you start in June or September, you're trying to forecast under circumstances that are still evolving–we can't play a game with half the deck missing. By December, the full year's data is in, giving a clear view without the noise of mid-year uncertainties.

There's also a psychological advantage, I think. Starting too early means doubling stress and worrying about finishing strong this year while already gearing up for the next. Tackling this in December keeps focus sharp and effort concentrated, simplifying what could otherwise become a mental juggling act.

In my experience building two successful companies and helping three others secure exits, this simple yet bold take has always worked. Being deliberate at the right time, not prematurely overthinking.

Bhavik Sarkhedi, Founder & Creative Director, Ohh My Brand

Q3 Results Guide Budget Preparation

While there is no one-size-fits-all approach to budgeting, it's generally best to begin the process at least a couple of months before the start of your financial year, typically after the third-quarter results are available. This allows time to review current performance and historical trends, assess how last year's performance aligned with budgets and forecasts, and identify any necessary adjustments. A key part of the process is understanding the company's strategic goals for the upcoming year, including revenue targets, KPIs, and resource allocation. These decisions will impact both revenue and expenses, including headcount.

As the year progresses and the budget is established, it's important to regularly update the model and provide revised forecasts. This enables ongoing comparison of actual performance against the budget and provides a forward-looking view of the remainder of the financial year. The updated forecast can incorporate any new developments, whether related to changes within the business or shifts in economic conditions not anticipated during the initial budgeting process.

Preparing at this time of year provides ample time for strategic alignment. Waiting until closer to the start of the financial year to gather information can create a compressed timeline, increasing the risk of errors or inaccuracies. By starting early, you allow for sufficient time to review and adjust assumptions, validate data, and ensure that outcomes align with the company's strategic goals. This also provides the opportunity to engage with executive leadership for feedback and final approval before the budget is finalized. As a result, the budget can be shared with key stakeholders well in advance of-or very close to-the start of the financial year, setting the stage for successful execution and alignment with the year's objectives.

Chad Rusek, VP, Finance & Corporate Controller, StrongDM

Finalize Budgets in Q4 for Team Alignment

I think it's important to examine budgets and assumptions multiple times throughout the year to determine how right (or wrong) your assumptions were and adjust accordingly–particularly when you're an early-stage startup without a wealth of historical data. That said, we like to sharpen our pencils in Q4 and finalize budgets by the end of the year so everyone on the team starts in January knowing what our goals are and how their efforts impact the business.

Caren Maio, CEO & Co-Founder, 100

November Personal Budgeting for Holiday Deals

So I think there are different times for your personal life and for your business.

For my personal life, I am starting now, in November, to make that plan. Why? I want to take advantage of deals and sales. Not just black Friday, but there are also many summer items that are going on sale as winter approaches, deals on electronics, and more. My brides out there? It's a great time to buy those bulk gifts for your wedding party or family members because of the deals. I used this strategy when preparing for my own wedding.

Now, the responsible advisor in me also is starting to look at my personal finances now because if I have an idea of how much I will spend around the holidays, I am prepared to not increase my debt. I like to go into the new year (really each quarter) with credit cards and high-interest debt paid off.

Then, back to businesses or business owners, I give myself the first two weeks in January every year to reset and game plan. It's hard to work on the business when in the business so closing out the year strong is why planning works better for me in January. In those first two weeks, no meetings, I take time off work, almost like a personal financial retreat to budget for the year.

Kristin Thompson Poelker CFP®, Financial Planner

Ongoing Budgeting Adapts to Real-Time Changes

The best time to work on budgets and forecasts isn't a one-time event; it's an ongoing process. A big mistake people make is adopting a "set it and forget it" approach to budgeting. Life doesn't follow a predictable, linear path, and things change. That's why it's essential to have a budgeting system that's flexible and can adapt to those changes in real-time.

We use cash flow software that allows adjustments on the fly, meaning you're not limited to setting your budget just once at the beginning or reviewing it at the end. Instead, budgeting should be something you do continuously, making small adjustments as life events or changes in income and expenses come up. This way, you're not tied down by a rigid budget but are instead in a position to understand the long-term impact of your spending decisions, whether you're over or under budget.

With tools like eMoney and guidance from an advisor, you can see how your spending decisions today might affect your financial future, even decades down the road. So, in short, the "right time" to budget is constantly keeping it dynamic and responsive to the way life really unfolds.

Year-end is a crucial time for proactive tax planning, which goes beyond just cash flow management. It's about identifying opportunities to make the most of your tax situation. For example, by reviewing where you fall within tax brackets, you can spot unused space in lower brackets and potentially take action, like a Roth conversion, to maximize those advantages.

Prepping now allows you to use any remaining room in the lower tax brackets before the year ends, which ensures you're not leaving money on the table. By taking these strategic steps at year-end, you're setting yourself up for long-term success by optimizing your tax position and enhancing your financial flexibility for the future.

Stewart Willis, President & High Net Worth Advisor, Asset Preservation Wealth & Tax

Constant Budget Planning for Financial Security

Constantly. Obviously, allocating funds in a structured manner before a time period begins, be it for the next quarter or year, is crucial as it provides consistency and clarity for your organization. However, the planning, evaluation, and analysis of the efficacy of how the current budgets are realizing your current strategic goals and integrating that information with future strategic initiatives is the foundation of a financially secure business.

Dimitri Syrkin-Nikolau, Co-Founder and CFO, Ruca