Budgeting allows you to use your company's financial resources effectively. As a result, your company achieves the defined goals. You will be able to control your finances better and thus promote your growth. You also ensure transparency and maintain an overview.
Bysetting the budget at , you can see how best to use your financial resources and where adjustments are necessary. You monitor and optimize performance and the resources required for this. Powerful software helps you to do this.
The first step is to create a budgeted income statement. This is based on sales planning and cost planning, including investments (capex), personnel and operating costs. The cash flow planning (liquidity planning) and budgeted balance sheet are derived from this. Various sub-plans form the basis of the planning. These include, for example
In doing so, you pay attention to the integration between the financial plan, budgeted balance sheet and income statement. Here, too, can help you withtechnical solutions that optimize the budgeting process. In addition to profit planning, the software supports the derivation of the financial plan and the budgeted balance sheet in a uniform and consistent manner.
Budget planning is done step by step and usually only for the coming year. If budgeting is planned for several years, the accuracy of the resulting forecasts is reduced. In general, budget planning is based on the company's strategic goals. You derive the budget targets from these. A traditional type of budget planning consists of the following ten steps:
If management demands a more agile planning approach from controlling, then Excel-based processes are hardly suitable due to their time-intensive nature. It is important to automate the cyclical processes as much as possible. Only then can timely budget planning and its adjustment be implemented.
With a standardized solution for all accounting and controlling tasks, it is possible to incorporate key information into the overall planning. In addition to purchasing, sales, human resources and other factors, budget planning plays an important role in securing the company's success.
Joint budgets offer major advantages in operational management. The software solutions used by Consilix enable specialist departments to jointly create and edit plans and support the implementation of budgets. This takes the form of forecasts, for example. The technology enables updates to be made at the touch of a button. In many renowned companies, Excel has therefore long been a thing of the past.
Only well-functioning operational budget controlling enables compliance with strategic goals and early detection of avoidable problems.
The data required for this often comes from accounting. To do this, you analyze the data from the previous year and compare it with the expected result. From this, you derive measures and operational adjustments.
Jedox is a user-friendly software that optimizes budgeting by accelerating planning processes. This increases the efficiency, reliability and quality of budgeting. Jedox can be used across all departments. The data is automatically transferred from your ERP system, such as SAP, Microsoft Dynamics or Abacus. It is then possible to check the entries in more detail. In addition, the typical and time-consuming preparation of data in Excel is no longer necessary.
Every company has limited resources. Often there are not enough financial resources available. Budget planning is then used to manage all business activities for the following accounting period. When budgeting, it is therefore important to weigh things up carefully and plan prudently. Clever allocation of resources prevents unnecessary expenditure and makes financial resources available within an economically justifiable framework.
With the EPM software Jedox, we offer you the opportunity to create your budget planning quickly and efficiently. Jedox creates a business forecasting data model directly from existing data, based on your expert knowledge and facts. The figures and insights gained can then be used automatically by the company-wide operating systems.
Budgeting is the engine of your strategic planning. We at Consilix AG will be happy to work with you to create a budgeting solution that fits your company perfectly. Getin touch with us todayat .