Resource allocation: preparing and managing money
Once an organisation's plans have been developed, the question of how to implement them effectively arises. Budgeting and forecasting are key tools that help to solve this problem.
With the help of budgeting and forecasting, the company's goals and plans can be broken down into specific steps, which allows you to control their implementation and ensure that the planned results are achieved.
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Why is this necessary?
- Plan and monitor the company's financial flows, controlling both revenues and expenses.
- Effectively allocate and use various resources, including financial and labour resources.
- Ensure timely fulfilment of all company obligations, such as employee salaries and wages.
- Prevent situations from arising where there are insufficient funds in the company's accounts to cover current ones.
- Monitor the fulfilment of set objectives by comparing the company's business plans with actual results.
For the development of the company
From the very beginning of its activities, the company faces the need to control income, expenses. In the absence of a large business, the company can do without a strictly defined budget; it is enough for the manager to keep track of the payment schedule.
However, as the company grows - the number of business partners, the range of goods and services increases - there is a need to structure all this information. For the development of the company it is necessary to set goals. Budgeting helps in this, which makes it possible to solve all these tasks in a systematic and efficient manner.
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 computerised financial model of an enterprise that integrates various budgets, such as production and other budgets. Such a model allows you to analyse them for each financial direction, comparing them with the data. This approach allows you to show how changing 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.