ARTICLE — Finance departments spend a considerable amount of time creating budgets each year. But that is just the tip of the iceberg when it comes to the effort involved in the budget process.
Controlling budgets is extremely hard for most organizations:
- Takes too long
- Costs too much
- Involves too many people
- Requires too many manual processes
- Does not reflect changing business conditions
- Does not capture spending in the procurement pipeline
Making matters worse, many organizations depend on spreadsheets for their budget process.
When you consider all the work that is involved in ensuring that budgets are met, it is no surprise that less than 50 percent of the budget and forecasting process is spent on analysis, strategy development and target setting, per the “Best practices in the budget and planning process” report from PwC.
Poor budget control results in:
- Lack of financial insights to make effective decisions
- Missed profitability goals
- Cashflow and working capital management issues
- Inability to quickly respond to changes in the market
- Regulatory issues
Budget overruns also strain relationships with management and investors.
Organizations can improve their financial performance by automating budget control across business units and functions. An automated budgetary control for NetSuite helps organizations:
- Control spending tightly
- Accurately forecast cashflow
- Meet targets for profitability
- Adjust directly quickly
- nfluence buying behavior
- Drive action
Automated budgetary controls for NetSuite accomplish this by removing and reducing complexity in expense management and standardizing budget control processes and systems.
The technology does this by providing:
- Budget checking and enforcement from the point of requisition
- A single source of the truth across the enterprise, no matter where units are located
- Seamless integration with NetSuite
- Instant updates to the budget ledgers every time a transaction is modified
- Collaboration between finance, purchasers, and operations
- Transparency and accountability for budget reporting
- Procurement best practices governance
- Management of CapEx project expenses, OpEx budgets, and expense amortization
Automation makes controlling budgets as easy as possible. If controlling your organization’s budgets is too hard, PyanGo wants to speak with you.
Want to see the solution for yourself? Click here to arrange a no-obligation consultation with one of our experts.