When it comes to budgeting, the traditional method used is spreadsheets. However, over the years, spreadsheets have demonstrated themselves to be insufficient to handle budgeting in the ever changing business world. Hence, dedicated corporate budgeting solutions were born to deliver the accuracy, agility and responsiveness that companies so desire. A powerful budgeting solution should help businesses adopt budgeting best practices, such as:
Blog Topics: Planning and Budgeting, Talent Management, Financial consolidation, planning and reporting, Financial Accounting Management Software
In 2010, Aberdeen Group carried out a study, which shows the graded popularity of standalone consolidation/reporting tools and consolidation/reporting tools included in ERP systems among best-in-class, industry average and laggard companies. The results indicate that standalone or specialised financial reporting and consolidation tools (71%) were preferred over consolidation features included in ERP applications (37%) by best-in-class companies.
Blog Topics: Planning and Budgeting, Financial consolidation, planning and reporting, Financial Accounting Management Software
Given the strategic planning best practices, it is obvious that the creation of a good plan requires far more than just collecting a set of financial estimates. To achieve a budget and strategy alignment, use the following six steps:
Blog Topics: Planning and Budgeting, Talent Management, Financial consolidation, planning and reporting, Enterprise Performance Management (EPM)
Given the strategic planning best practices, it is obvious that the creation of a good plan requires far more than just collecting a set of financial estimates. To achieve a budget and strategy alignment, use the following six steps:
Blog Topics: Planning and Budgeting, Talent Management, Financial consolidation, planning and reporting, Enterprise Performance Management (EPM)
Depending on their situation and strategies, companies approach the financial consolidation process in different ways. It is important that businesses thoroughly understand their choices so as to achieve an efficient financial close. The main approaches, some of which may be combined, are discussed below.
Blog Topics: Planning and Budgeting, Financial consolidation, planning and reporting, Financial Accounting Management Software
Most organisations have plans. There is, however, a huge difference between a good plan and a bad plan. A bad plan, for example, is one that consists only of costs and revenues. This plan provides no guidance for the organisation regarding how it is to achieve the revenue targets. There is no linkage between the high level goals and the day-to-day activities necessary to achieve them.
Blog Topics: Planning and Budgeting, Talent Management, Financial consolidation, planning and reporting
According to Ventana Research, the majority of companies (83%) view the ability to close their books quickly as important or very important. However, businesses nowadays take longer to close than they did five years ago. Pressures from both within and outside of organisations are preventing them from achieving an efficient financial close.
Blog Topics: Planning and Budgeting, Financial consolidation, planning and reporting, Financial Accounting Management Software
According to a study by Hackett Benchmark, companies spend on average 25,000 man days on planning and performance measurement per US$ 1 billion turnover. Another study by KPMG suggests that the budgeting process takes up 20-30% of managers’ and controllers’ time. Moreover, consultants at Horvath & Partner in Germany note that controllers spend at least 50% of their capacities on planning and budgeting.
Blog Topics: Planning and Budgeting, Financial consolidation, planning and reporting, Enterprise Performance Management (EPM)
According to a study by Hackett Benchmark, companies spend on average 25,000 man days on planning and performance measurement per US$ 1 billion turnover. Another study by KPMG suggests that the budgeting process takes up 20-30% of managers’ and controllers’ time. Moreover, consultants at Horvath & Partner in Germany note that controllers spend at least 50% of their capacities on planning and budgeting.
Blog Topics: Planning and Budgeting, Financial consolidation, planning and reporting, Enterprise Performance Management (EPM)
Traditional budgeting is argued to have begun about a century ago as a method of managing costs and cash flows. Typically, the process’s steps are as follow:
Blog Topics: Planning and Budgeting, Talent Management, Financial consolidation, planning and reporting, Financial Accounting Management Software
Rick Yvanovich
/Founder & CEO/
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