Allocation of financial resources: budget preparation and management

After developing the organization's strategic plans, the question arises about how to effectively implement them. Budgeting and forecasting are key tools that help solve this problem.

Through the use of budgeting and forecasting, a company's goals and plans can be broken down into specific steps, allowing them to be monitored and ensure that planned results are achieved.

Why is this necessary?

plan and track the company’s financial flows, controlling both income and expenses;
carry out effective distribution and use of various resources, including financial, material and labor;
ensure timely fulfillment of all financial obligations of the company, such as payments to suppliers, loans, taxes, and employee salaries;
preventing the detection of cash crisis situations associated with insufficient funds in the company’s accounts to cover current expenses. This can happen, for example, when a company conducts transactions with prepayment or deferred payment;
organize interaction between various areas of business activity;
tracking the implementation of set goals by comparing the enterprise's activity plans with actual results, analyzing the causes of deviations.

For enterprise development

From the very beginning of its activities, the company is faced with the need to control income, expenses and cash flows. In the absence of a large business, the company can do without a strictly defined budget; the manager can simply remember or write down the expected profit from each transaction, monitor the schedule for receipt of payments and payment of bills.

However, as the company grows - the number of transactions, business partners, and range of goods and services increases - it is necessary to structure all this information. For the successful development of a company, it is necessary to plan cash flows, predict operating results and set long-term goals. Budgeting helps with this, which allows you to solve all these problems systematically and effectively.

What should you take into account when creating a budget?

Flexibility in planning allows you to quickly respond to changing market conditions and quickly adjust budget indicators. Thanks to the speed and adaptability of the budgeting process, you can effectively manage your resources and strategically plan development.

Set tasks

Develop several budget options so you can analyze and choose the best option. Navigate between different options to quickly respond to changing external conditions. Define realistic goals and key performance indicators.

Plan your budgets

It is necessary to draw up budgets with the necessary level of detail, taking into account products, product categories, etc. Normative-causal models that will help determine the main reasons for changes in the company's expenses and income.

Budget management

Reduce the planning period and create the possibility of flexible financial budget management. Continue to monitor important indicators. It is important to maintain a balance between strategic and tactical goals.

Create forecasts

Develop continuous and flexible budget forecasts. Update your budget using predictive models. Making adjustments to the influence of various factors during the forecasting period in order to more accurately understand financial flows.

Budget control

Provide quick access to all key business performance indicators of your company. Keep track of key sales and pricing data. Use plan-to-actual analysis to continuously monitor data in budget planning, allowing you to quickly respond to changes.

Life management

Research and analysis of the impact of macroeconomic factors. Conduct prompt reviews of budget planning when changes occur, while maintaining the accuracy and reliability of information. Comparison of results with the company's financial strategy in real time.

Work optimization

An automated budgeting system is a computer financial model of an enterprise that combines various budgets, such as production, investment, sales and purchasing, and others. This model not only allows you to predict financial flows, but also analyze them for each financial area, comparing them with actual data. This approach allows us to predict how changes in parameters will affect the economic position of the company.

Saves time

Freeing up time and resources for editing work files.

Single base

A system with a unified information environment for all financial departments.

Data integrity

Collect data from all sources and verify accuracy and relevance.

Data quality

Minimizing human errors when working with tables and large data.