Setting up a budget can be challenging, and so is choosing the right budgeting method that best fits your business’ model and needs. In this article, we will shed light on the five most common approaches to budgeting, as well as their pros and cons.
Recent TRG blog posts
5 Most Common Budgeting Approaches and Their Pros & Cons
Posted by Rick Yvanovich on Tue, Aug 27, 2019
Blog Topics: Planning and Budgeting, Financial Accounting Management Software
How to Budget: A Step-by-step Guide to Developing & Managing a Budget
Posted by Rick Yvanovich on Wed, Aug 7, 2019
A budget is a quantified version of your strategic goals. Therefore, having a sound budget in place is instrumental in driving your profitability and also in averting any number of adverse consequences that may arise as your business grows.
Blog Topics: Planning and Budgeting, Enterprise Performance Management (EPM), Financial Accounting Management Software
What is Zero-based Budgeting?
Posted by Thai Pham on Fri, Jul 26, 2019
It is safe to say most businesses would resort to cost cutting initiatives in a time of tight margins and high risks. However, a research by McKinsey shows that only 26% of those cost-reduction programs, still yield effective results after four years. CFOs, therefore, are increasingly turning to zero-based budgeting, ZBB, as a more sustainable approach to cost reduction.
Blog Topics: Planning and Budgeting, CFOs, Financial Accounting Management Software
What Is Beyond Budgeting and How Is It Reinventing Management?
Posted by Rick Yvanovich on Tue, Jul 23, 2019
As businesses are rethinking how their management systems should be changed in a post-industrial world, the principle of beyond budgeting has received much attention due to its revolutionary nature. But what exactly is beyond budgeting? And how is it different from the current practices?
Blog Topics: Planning and Budgeting, Financial Accounting Management Software
A Primer on Budgeting: What is a budget and more
Posted by Rick Yvanovich on Tue, Jul 16, 2019
Budgeting plays a vital part in any organisation regardless of size. For some, the process of building a budget is downright tedious, time-consuming, and challenging. What's more, businesses have to worry about not only short-term budgets but also long-term ones.
Blog Topics: Planning and Budgeting, Enterprise Performance Management (EPM), Financial Accounting Management Software
Financial Planning vs Budgeting vs Forecasting: A Quick Comparison
Posted by Rick Yvanovich on Fri, Jul 5, 2019
Planning, Budgeting, and Forecasting (PB&F) is one of the three management processes that constitute Enterprise Performance Management (EPM). We have presented the basic principles of EPM and its other two components in a previous post. In this article, we will dive deeper into the PB&F process and discuss the similarities and differences among financial planning, budgeting, and forecasting.
Blog Topics: Planning and Budgeting, CFOs, Financial consolidation, planning and reporting
How to Turn Budgeting into a Value-Adding Process
Posted by Rick Yvanovich on Wed, Sep 5, 2018
In today’s complex and rapidly changing business climate, there is an increased demand for top management to better observe, measure, and manage their business. Planning and budgeting plays an important role in enterprise performance management. However, in many organisations, planning and budgeting is not seen as adding value since:
Blog Topics: Planning and Budgeting, Financial consolidation, planning and reporting, Enterprise Performance Management (EPM), Financial Accounting Management Software
Why You Should Strive for an Efficient Financial Close
Posted by Rick Yvanovich on Wed, Aug 8, 2018
In today’s fast-moving world, companies have to juggle multiple priorities when managing their business, such as overseeing financials transactions, measuring corporate performance, attesting financial reports, timely closing and consolidating financial data. Thus, it is no surprise that CFOs are always aiming to close books and comply with regulations faster and more efficiently.
Blog Topics: Planning and Budgeting, Financial consolidation, planning and reporting, Financial Accounting Management Software
What to look for in a planning and budgeting solution
Posted by Oanh Nguyen on Sun, Jun 21, 2015
Planning and budgeting provides valuable insights for managing risk, boosting corporate performance and shareholder value and making strategic decisions. Using a business model as the basis of the planning process enables the development of: charts of accounts; time divided by years/quarters/months; version control to store actuals/budgets/forecasts and other important data segments, which can be used to create the plans. Organisations should look for planning solutions capable of delivering flexible business models that are mapped to their unique business requirements.
Blog Topics: Planning and Budgeting
Planning and budgeting software: Solutions to common problems
Posted by Rick Yvanovich on Thu, Jan 22, 2015
Jack Welch, former Chairman at GE once said: “The budgeting process…sucks the energy, time, fun, and big dream out of an organization”. Yes, everyone hates it! If there is an effective way to do it without trying too hard will you take its advantages to grow? What you need are just a good planning and budgeting process and the right technology!
Blog Topics: Planning and Budgeting, CFOs, Financial consolidation, planning and reporting, Financial Accounting Management Software