Before Craig Dawson was sold to Watford for £6million, Jenkins revealed Albion’s outgoings this year were larger than their incomings.
But he says the finances are ‘comfortably’ within the club’s grasp, and believes next season will be ‘challenging but exciting’.
Albion’s parachute payments dwindle from £41.5m to £35m for the upcoming season, and the Baggies need to cut the wage bill as a result.
When Jenkins returned to The Hawthorns in February 2018 he was shocked to see £40m of reserves had been splurged in one year ahead of a season that ended in relegation.
“We’re one year further on and still in the Championship, so the parachute payment is slightly smaller,” said Jenkins, at Bilic’s unveiling last week.
“The finances have improved, but they’re still challenging. The parachutes are dropping.
"(As it stands) the outgoings this year compared to the incomings are still greater.
“We’ve still got final instalments due on players like Jay Rodriguez and Kieran Gibbs, and others from that transfer window.
“While people will say we’ve got the Nacer Chadli money coming in, we have, but the difference still needs to be addressed.
“Saying that, we will still have a very competitive budget going forward. It’s going to be a challenging but an exciting season.”
Albion have only received one £3.3million instalment from Monaco so far from the £10m sale of Chadli last summer and are due to be paid the second one this summer.
Since Jenkins spoke, the Baggies have also sold Craig Dawson to Watford in a deal believed to be worth a total of £6m.
However, Rochdale will receive £1.2m of that thanks to a 20 per cent sell-on fee agreed in 2010, meaning the Baggies will only receive £4.8m.
Albion's squad also needs a number of additions after six loanees returned to their parent clubs and five others were released.
“Not only have we got (to pay for) Gibbs and Rodriguez, we’ve still got outstanding sums on Sam Johnstone and Kyle Bartley that need to be met this summer,” added Jenkins.
“We’re still owed money on Chadli and the final instalment on Saido Berahino.
"There is a net deficit at the moment that will be addressed but it’s comfortably within our financial straits.”
Albion will sell Salomon Rondon this summer and could also cash in on Allan Nyom, who has one year left on his contract.