Tag: Budgeting

6 Keys for Budgeting

The model should embrace much more than just budgeting, it is more a philosophy of decentralization and a way of encouraging managers at all levels to become accountable for their performance without tying them to an annual budget straitjacket.

In addition, benefit from faster and more adaptive decision-making, reduced bureaucracy and lower costs. The companies became more competitive and customer satisfaction improved along with many of the company’s’ KPI’s (Key Performance Indicators).

Replace annual budgeting and centralized control systems with, multilevel controls that include effective governance,

Fast financial actuals
Trend analysis
Rolling forecasts
Key performance indicators (KPI)
Performance ranking…

Continue Reading >>

Budgeting Blunders

There are some common budgeting blunders that plague many companies, and these blunders are often associated with well-meaning individuals who unintentionally bring some bad budgeting practices to the table.

Let me introduce you to Calculator Cindy, Sneaky Smith, and Sandbagging Sally.

Calculator Cindy: Calculator Cindy appears to be really organized when she comes to the budget meeting. She has her line numbers memorized. She knows each account and the amount spent from that account thus far this budget year.

But when questioned about her budgeting numbers, it is discovered that she simply takes the current spending and annualizes that for the year. What’s wrong with that?
How can you avoid this budgeting blunder?

Continue Reading >>