How to improve the budgeting process for 2022 in the company?
In the article, we answer the following questions:
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Budgeting – what is it?
Budgeting is one of the elements of proven controlling and Business Intelligence in an enterprise.
When creating budgeting, one should rely on verified data and analysis. Often, companies decide to use dedicated tools. Mostly, teams use financial and accounting systems that have appropriate functions. Systems should be able to define many values and create deep structures.
Budgeting is usually done before the start of a new billing period. The end of the year is the perfect time to plan, settle and analyze costs. It is an element of accounting, but above all, of effective business management.
The budgeting process involves managerial decisions regarding production, marketing, finance, and procurement. The subject of budgeting may be, for example, total costs of performed production tasks or required capital expenditures, expenditures for the current operation of the investment, transfer from the sale of expenditures to various business activities.
Budgeting supports the company in areas such as:
creating a cost estimate
budget approval and control
Budgeting functions in the enterprise
Budgeting allows for the proper functioning of the enterprise and the efficient implementation of business goals. The implementation of such an action in the team allows, above all, to mobilize employees to periodically plan costs, coordinate activities between departments, facilitate communication, allow for the assessment of the implementation of tasks, and provide data that may facilitate other processes in the company.
The basic functions of budgeting include gathering important information. It provides managers with information on the progress of tasks and allows them to create effective reports. It facilitates the coordination of the work of various departments and the inclusion of activities in a coherent budget. It makes it possible to set priorities and goals consistent with financial possibilities.
Improving the budgeting in the enterprise
Creating budgeting is related to the collection of a lot of information, data integration, and effective conversion. A comprehensive management program allows you to:
- creating advanced reports,
- has alerts to facilitate control,
- has compiled formulas and facilitates the creation of financial strategies,
- works with other systems,
- integration with various databases,
- easy and intuitive work
The Intense App can help you with budgeting. The INTENSE platform allows for the creation of any deep budget structures and assigning to their items – defined controlling dimensions.
The Intense App allows you to define KPIs and create an alert structure.
The use of the INTENSE WorkFlow module ensures efficient service not only of budgeting, approval, verification, corrections, and budget revisions, but also the possibility of recording and assigning any documents, giving the possibility of online verification and approval of costs related to the available funds in the budget, or its elements, e.g. at the level of potential revenue or cost orders.
The INTENSE Budget Manager application allows you to define budget structures, sheets, and patterns for budgeting and, using the INTENSE WorkFlow module, distribute them to individual operators responsible for filling, verification, approval, etc.