Budgeting Season: Three Ways to improve efficiency

Budgeting Season: Three Ways to improve efficiency

With the fiscal year coming to an end, budgeting season is right around the corner. Now is the best time to prepare. Give yourself an ample amount of time to improve department collaboration, and overall productivity. Here are the three steps that make the budgeting process less frustrating, and more advancing.?

1) Collaborate

First step is open communication. The budgeting team must talk with the executive decision-makers in the leadership team, and re-evaluate goals, strategies, and expectations, to outline assumptions for achievement in the new year. It is crucial to self evaluate as an organisation, to come in terms with realistic expectations for the company.?

By gathering all the talents in one room, budgeting leaders could then identify the important stakeholders involved in the process, ask crucial questions, overcome obstacles, and overall operate the budgeting process at its full potential.

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2) Data collection

Data collection is often identified as the most painful and time consuming course in the budgeting process. The data housed in organisations is often a blended clutter of isolated systems and departments, causing the budgeting process to be a mess.?

When data passes from one system to another, it is open to oversight and miscalculation. On top of that, even top tier planning and budgeting professionals realise that there is always room for human error. They spend way too much time rearranging and identifying correct data, before the process of budgeting can begin.?

To prevent all this, try migrating to a cloud-based ecosystem that can collect and process all of your data. Putting your data on the cloud ensures that you have a single source of truth, and easier data collection. Additionally, cloud systems usually provide an overview on your organisation’s performance and budgeting, so your budgeting leaders can highlight areas of risk or concerns, and provide solutions to gaps in the overall data.?

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3) Tools

Every organisation wants efficiency effectively, and accuracy. To withstand the budgeting season, here are some strategies that are proven to work:?

• Don’t be afraid to adopt cloud technology: Cloud solutions are here to help with planning, collaboration and budgeting! They are adapting the way finance teams do their budgeting and analysis easily. If you’ve never ventured into finance and budgeting software solutions before, now is the time.
• Use simple templates for data collection: Don’t overcomplicate your data more than it needs to be. Adopt straightforward and customisable templates that are easy for all business units to understand. It is very important to make sure everyone is talking in the same language, improving the efficiency and collaboration between teams.
• Look into how data is collected: Find out if there is an alternative opportunity to automate data imports. Identify how your team distributes and collect information. Work with internal partners to streamline your data gathering process.
• Utilise rolling forecasts: Rolling forecasts is a continuous trend in the world of finance. It allows budgeting teams to revisit budgets in a timely manner, and re-forecast based on new information. Most rolling forecasts predict 6 to 12 months into the future, allowing organisations the flexibility to filter the allocation of resources, and prepare in advance when disruptions occur.

The key to a successful budgeting cycle is to plan in advance. Before advancing every step, communicating with the stakeholders is key to efficiency. Start preparing now, you will be glad that you took the steps needed, once you’re near completing the organisations’ annual budget.

How could NOVA help?

NOVA has helped over 2,000 businesses worldwide to streamline their business and accelerate strategic transformation, with one collaborative and scalable cloud accounting solution. Our solutions offer powerful budgeting and forecasting capabilities with real-time accessible data, to everyone who needs to see such information. Boosting participation and accountability, making it easier to get meaningful input and engagement.?

Start your strategic budgeting early and schedule a free consultation with us now.