Although budgeting is considered a tedious task, it remains essential to your business. The fact is, certain external parties will expect annual budgets. It may be time to re-think your budgeting process. Are you making the most of your budgets? Is there a better way?
Take the stress out of budgeting and let us work closely with you to create a simple, easily manageable three-way budget that will give you greater visibility, enhanced understanding of your financial drivers and increased accuracy.
You may also want to:
o Link budgets to your organisation’s strategy, to ensure funds are spent on projects that align with this strategy;
o Each organisation has individual business drivers – your budget should reflect these drivers;
o Reduce the level of detail. Too much detail may provide false comfort. World-class companies typically have no more than 40 line items;
o Create rolling forecasts, effectively eliminating the need to spend all your time on annual budgets; and
o Have a forward view of your finances and cash-flow by easily maintaining your forecasts.
The benefits of improving the budget process includes less time spent at year end on budgets, employees having a better understanding of the strategic goals they are expected to meet, quicker response time to any competitive forces, better cash-flow prediction, growth-planning, cost reduction and increased profitability.
Having a flexible rolling forecast showing your future cash-flow needs at all times will lower your overall financial risk and gives you peace of mind.
Create a simple budget – it’s about you feeling in control of the budget.