Experts in Business and Financial Systems

Budgeting Best PracticesOctober 11, 2012

Experts in Financial and Business Systems with Over 24 Years Experience Providing Complex Technology Solutions

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Enterprise Resource Planning

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Budgeting Best Practices

Grantley Smith, CIMASenior Solution Advisor

TGO Consulting Inc.

Alan Whitehouse, MBAChief Architect

True Sky Inc.

Why Do We Budget?

Budget

We “have to”

Financial predictability

Business drivers

Performance management

How Does the Process Work?

Create Contribute Reviews/Approvals/Scenarios Finalize

Crea

te

Cont

ribut

e

Cons

olid

ate

Revi

ew

Pres

ent

Fina

lize

Mod

ify

July August September October November

September October November

What are the Elements?

People

• Involvement• Accountability• Time• Accuracy

Information

• Detail• Drivers• External• Timeliness• Accuracy

Process

• Accessibility• Security• Visibility• Confidence• Duration• Frequency

Creation

Systems Data

SpreadsheetsVolume

Distribution Email

Creation Best Practices

Remember we only do this once a year, grudgingly

The simpler the better

Tailor the template to the user/process

Connect to data don’t copy

Validate up front

Structured file distribution

Input

Detail

AccuracySpeed

Input Best Practices

Eliminate the “divide by 12” mentality

Drivers not dollars

Input more than just numbers

Fake deadlines

Consider zero based budgeting

Consolidate

Retrieval

Merging

Repetition

Consolidation Best Practices

Storage and retrieval

Protection of formulas and sheets

Use formula don’t copy

Ultimately get an application

Review

Content

CommunicationCollaboration

Review Best Practices

Leave plenty of time

The numbers should not be a surprise

Collaborative input

Don’t sweat the small stuff

Make sure you understand the intent

Analyze

Summary

Quantitative

Defined

Analysis Best Practices

This is the reason you plan!!!

This is where Excel rocks

Analyze the data and the intent

This should NOT be a review/approval

This is your time for “what if”

What you should aim for: Simplicity Greater functionality Detail capture Integration capabilities Workflow control Flexible reporting and analytics “What If” modeling

What you will get: Greatly reduced administration Faster turnaround Collaborative creation Accurate and informative information Strategic capabilities

…MORE TIME TO THINK

In Summary