As budgeting is a critical part of every organisation, it is important that the maximum value is realised through budgets. The methodology KPI Management Solutions uses will help your organisation get the most out of your budget and free up resources to focus on other key aspects of running your business.
Some of the key aspects of implementing a budgeting solution are:
- Driver Based Budgeting
- Ease of Use
- Scenario Planning
Driver Base Budgeting
A driver base budget will enable you to budget according to the activities that drive your business. The traditional way of budgeting was to budget purely based on the financial targets that the business needs to achieve, unfortunately the execution required to meet these numbers was often not taken into account.
By changing the way budgeting is done from the traditional approach to Driver Based Budgeting, you can focus on the key business activities that drive the financial targets of the corporation.
Ease of Use
A budgeting solution should ease the burden on resources during Budget time. Therefore we aim to implement solutions that are efficient and easy to use.
A well implemented budgeting solution should allow for a high level of information transparency. Both input and aggregated data should be available at any stage of the budget process.
During the budget process and budget reviews, the ability to understand the assumptions behind the numbers is essential. While the budget is being captured, commentary and supporting documentation can be added to explain assumptions. This discipline will reduce the time taken to review and understand your budget.
Scenario Planning aids decision makers to make quick and informed decisions about the corporation’s budget and how key factors, such as the economic environment, may affect it. The use of Driver based budgeting is key to being able to perform a successful Scenario Plan.
By implementing these and other techniques of budgeting, KPI Management Solutions will aid your company in producing efficient and accurate budgets. Our Preferred technology is Prophix for which we are value resellers in South Africa.
- Previous : Rolling Forecasts
- Next : 25 Benefits of Clearly Defined Processes (Info-graphic)