Is Your Budgeting Process Putting Your Business at Risk?

Posted on: September 14, 2017

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Topics: Budgeting, Business Budgeting

It goes without saying that effective business budgeting is a critical component of any organization’s success. Keeping an eye on your numbers, carefully analyzing the data presented to you, and utilizing that data to establish thoughtful business intelligence is crucial when it comes to making well informed decisions about the future of your organization and the strategies necessary to reach your goals.

That’s great – you need to budget, and you likely have a system in place to do so, but is that process putting your business at risk?

As your organization expands, the planning, budgeting and forecasting process naturally becomes more complex. More contributors and more reviewers involved in the process means increased opportunities for duplication, errors and missed deadlines. When this happens, there is much more at risk and at the same time, you’ve got more riding on those numbers. Plus time is not our friend and there is increased pressure to reduce time and get results reported faster.

Most business rely on Excel for their budgeting, and that’s good. Excel is a great tool that offers a cost-effective way to track data, and most users in your organization are familiar with it, meaning less training is required. However, when Excel is the exclusive system relied upon, you don’t have the control necessary to avoid the risks to your business. Without a system for centralized management of the data, managing spreadsheets and processes across multiple locations, departments and levels of management is impossible during the forecast and budgeting cycle.

How is this putting your business at risk?

  • Data and merging errors – no centralized system means manual entry is required. This all too often results in errors. You are probably also dealing with disconnected, lost or corrupted spreadsheets – all of which mean problems with accuracy. You’re probably also dealing with outdated data, and that’s never a good thing.
  • Compromised data foundation – no centralized data can make back-ups more difficult, and often data stored in multiple locations gets lost in the shuffle. Reviewing the data and tracking progress on the budget is also more difficult.
  • Unsecured data and spreadsheets – who is viewing the data in these spreadsheets? Without an access hierarchy, one controlled by your management system, it is much harder to control who has access to numbers. Centralized budgets with careful security management is the only way to truly ensure information is only seen by the intended audience.
  • An uncontrolled process – too many spreadsheets, the ability to alter templates, a lack of collaboration, and missing reviews are all results of an uncontrolled process. By automating the budgeting process and implementing a system of checks and balances, these risks are significantly reduced and efficiency and accuracy increase.

With a corporate performance management system built on the familiar interface of Excel, you get all the benefits of Excel as well as total control over the numbers, thereby reducing the risks to your business brought about by a budgeting system that can’t handle the complexities of your organization.

At TGO, we can help you improve your budgeting process and reduce the risks to your business.

For more information, please visit www.tgo.ca today.