What's Wrong with your Budgeting Process?

12.12.19 06:24 AM By admin

Over the years, most companies have recognized the arduous journey of budgeting and planning. The dissatisfaction in the budgeting process is undeniable, and some may even consider it as a should-be obsolete function because it takes up so much time but yields irrelevant results.

The typical scenario in budgeting is that it is an annual task usually done in the 4th quarter, which proceeds for at least 120 days. What's more frustrating about the budgeting process is that companies spend more to reduce errors in data and information. Why is this happening?

A common denominator for most companies struggling with their budgeting process is using a traditional spreadsheet-based financial planning software, which means budgeting managers and officers tend to face data quality issues.

In conventional financial planning software, budgeting officers have to spend a significant amount of time checking numbers and data provided by at least 100 cost centers.

That valuable spent time could have gone to the discussion with management as to what the data means. Unfortunately, most financial planning software does not support the dynamic and rapid changing business trends, and this is the reason why most budget can hold only in the 1st quarter of next year. However, on the 2nd until the 4th quarter, the budget plan is right for nothing.

These budgeting and planning models base their strategies on generalized assumptions that remain static even in the rapid and unexpected changes in today's business environment.

A good financial planning software that would help shorten the budget cycle to at least a realistic 70 days or less is one that could provide a more dynamic and forward-looking budgeting solution. That is a good criterion to start with.

To improve your budgeting and planning process, it is imperative that you use a good financial and planning software that will help you aggregate complex and voluminous information and conduct predictive analysis that represents valuable business impacts.

You should be able to simulate changing business trends and incorporate that with your budget propositions or simulate unexpected business scenarios and decide on a course of action without taking too much working time.

A good financial planning software like Epicor Financial Planner provides you a better technology for your business needs where you will be able to integrate financial information with operational plans. You can read more about how it handles the entire budgeting process by visiting www.efpcloud.com, or you can email info@dspanel.com to talk to one of our senior CPM consultants for free.

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