Budgeting process

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Christian Babbini Driver-based budgeting and planning (DBBP)

A good budget model is a complex set of data and constraints. But with the right approach, it can be simplified by focusing on the right cost drivers allowing a realistic image of the organization’s costs.

Moving beyond the spreadsheet or the way to optimize your budgeting process

DECIMAL'S BUDGETING SOFTWARE GIVES USERS THE ABILITY TO PREPARE, MANAGE, TRACK AND CONTROL THEIR BUDGETS, FORECASTS, PROJECTIONS AND SCENARIOS.

The way organizations manage information has changed drastically in the past 20 years, and the arrival of integrated management systems (ERP) has revolutionized the way operational transactions are processed. However, although these new systems do a good job supporting transactions, the method used to actually predict costs has evolved very little. In fact, many North American organizations still use spreadsheet programs such as Microsoft® Office Excel to do their budgeting process and planning (forecasts, projections and scenarios).

If ERPs do a great job of effectively structuring and efficiently storing the organization’s operational data, nevertheless they are not flexible enough to prepare forecasts and scenarios. Spreadsheet programs started to appear (in the 90s). As inexpensive tools, they slowed up the urgency to improve the organisational processes.

Budgeting pitfalls with overusing spreadsheets.

However, in the past decade, organizations have started to realize that even spreadsheets can have their limits. Boards of Directors are demanding more information about budgets and internal control requirements, forcing organizations to acquire a specialized budgeting software to meet these demands.

Decimal Suite features efficiently manage your budget, excluding possible budgeting pitfalls as planning errors, losing expertise when an employee leaves, inability to monitor cost reduction initiatives, to monitor variances or to provide relevant and timely information.

  • Consolidates data in a centralized database providing simultaneous access to several users;

  • Enables all managers and authorized users to enter budget data directly while keeping track of changes made;

  • Defines each user’s specific profile, security profile and access to information;

  • Creates scenarios based on calculation rules at different levels (account, type of account or specific parameter);

  • Establishes budget expenses based on volumetrics;

  • Organizes data according to needs (chart of account, administrative units, etc.);

  • Produces dynamic reports and provides features that enable users to easily calculate variances, make multidimensional tables and drill-down as far as detailed calculations of account forecasts;

  • Reports can be viewed on-screen, printed or exported to other systems, including spreadsheet programs such as Microsoft® Office Excel;

  • Contains fields for entering and/or attaching justificatory and/or explanatory notes and files;

  • Tracks organizational changes;

  • Where required, accepts more details than are normal in a budget item.


Download the Planning and Budgeting brochure