3 Expert Tips to Improve Enterprise Budgeting
By Bettina Bursik
Date: 20th May 2020
For enterprise-level budgeting, companies often rely on solutions they’ve pieced together over time, or on the traditional tool of finance, Excel spreadsheets. Given the growing amount of financial data that goes into enterprise budgeting, both approaches can lead to a relatively high error rate and, as a result, unnecessarily long turnaround times, coordination and approval processes. These three expert tips can help your organization improve your enterprise budgeting process.
The budgeting process is collaborative. This means that a solid budgeting approach is based on a broad data foundation that includes the planning data from departments across the organization. With the right approach and careful planning, end-to-end improvements in the budgeting process are possible!
Make data handling more transparent
Timing, as well as the way in which data is transferred, can influence the design of the budgeting process. Ensuring confidentiality of sensitive business information is also an important component.
It is therefore particularly important that all involved in the process are informed about what data, whether financial or non-financial, they may share with whom and when. This ensures that collaboration is not unnecessarily slowed down.
An exchange with other finance experts can help here and provide input on how working methods can be improved and boost confidence in the budgeting process.
Involve colleagues early and often
No planning process is perfect. Transparency and cross-departmental cooperation are what helps make the magic in this process. And despite the short life cycle, the timely submission of data is of particular importance. After all, this influences the financial and strategic goals of the company. Only when the last line item in the budget is clear to all those involved in the process, will you be able to achieve buy-in from all stakeholders on the importance of timely submitting data and working cross-functionally.
A solid foundation for buy-in and having the confidence of those involved in the processing of the data can have positive effects at all levels: On the optimization of budgeting, the direction of the organization, and the overall results.
Get the flood of data under control
We all know the amount of data in a company is continually increasing, which makes it more and more challenging to maintain a solid overview of all that data. Company data must be compiled, sorted according to relevance for budgeting, planning and forecasting and then analyzed. And every change, like a new employee or a new process, reiterates the need a solid approach to data management.
Using a modern, customized solution provides organizations a remedy by automating and consequently simplifying data collection and analysis. Once manual activities can be smoothly managed through automation, the susceptibility to errors is significantly reduced and data entry and approval processes are drastically shortened.
With the right solution, simple as well as complex budgeting scenarios can be created and the efficiency of individual business functions can be significantly increased, resulting in a more precise, more collaborative, and more accurate enterprise budget.
This article was originally published here on 20th May 2020.
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