Whether we like it or not, budgeting season is here. It begins as early as August, with finance teams hoping to wrap up the annual budget before their set yearly deadline, typically in December. The importance of the budget cannot be overstated. Companies need to set plans and identify opportunities that will keep the business operating as well as accelerate profitability. The accuracy and efficiency of the budgeting process is critical to organizational success.
Now is the time to get ahead. Organizations can take steps to make the actual budgeting process less of a headache than it usually is. Preparing now can improve departmental collaboration and drive a more efficient process overall, here’s how.
Collaborate
Before getting too far into the budgeting process, planning and budgeting leaders across the organization need to sit down with executive leadership and reevaluate goals and expectations. What worked and what didn’t work in previous years? It’s crucial that leaders establish goals and expectations, then outline assumptions for achievement that they all understand and agree upon. Once these goals and expectations are defined, planning and budgeting leaders must identify all stakeholders who will be involved in the budgeting process and when they need to be involved. These questions can help improve the budgeting process at its peak.
Data collection
Most planning and budgeting professionals can agree that collecting data from across the organization is a painful process. Organizations house data in a blended mess of systems and isolated departments that make the budgeting process difficult. Any time data passes from one system to another, there is room for human error. Finance professionals spend hours aggregating and reconciling data before proper budgeting can even begin. Planning and budgeting leaders need to clearly outline all sources of data needed for the budgeting process and establish a cadence of collection. Highlight areas of concern where the most risk exists in the process and seek to close the gap. Many organizations turn to a single system that will aggregate all the data, enabling finance to have a comprehensive and agreed-upon view of performance for budgeting.
Tools
Efficiency is always top of mind. How can your team not only survive the budgeting season, but do so efficiently and effectively, and thrive? There isn’t a one-size-fits-all solution, so here are several ideas/strategies that are proven to help:
Planning now is critical to having a meaningful and successful budgeting cycle. Before it gets too crazy, sit down with the team and have an open and honest conversation. You can prepare now! And there’s no doubt you’ll thank yourself as you work towards completing your annual budget.
How NetSuite could help?
NetSuite Planning and Budgeting facilitates both company-wide and departmental planning with modeling capabilities, approval workflows, and reporting within one collaborative, scalable solution. A cloud-based planning and budgeting solution makes data accessible, in real-time, to everyone who needs to see such information. Accessibility boosts participation and accountability, making it easier to get meaningful input and engagement.