Error message

Image resize threshold of 10 remote images has been reached. Please use fewer remote images.

Traditional Budgeting

Keeping Calm during Budget Season....... Top 5 Tips to Survive!

By Chris Ortega, MBA, Sr. Finance Manager at Emarsys, USA

As a former public accounting auditor, I have been through my fair share of busy seasons which usually ran from September to April. My busy season experience consisted of 60 - 80 hour work weeks, working on the weekends, learning at an accelerated rate, and then waking up after April 15 trying to realize what the hell happened the past couple of months. For me, this was a character building and learning opportunity that I am privileged and thankful that I got to experience in my career. However, like most, I realized this was not what I wanted to do long term.

Breaking the Chains of Static Budgeting & Planning

By Ernie Humphrey, Director, The CFO Alliance 

 

2017 budgets might be locked and loaded at your company, but that does not mean that they need to be anchors on your company’s ability to anticipate, respond and react effectively to dynamic market conditions in 2017. Companies all sizes are upgrading from Excel and all its related headaches to leverage cost-effective cloud-based budgeting and planning solutions that fuel business agility by allowing companies to implement driver-based planning and forecasting.

 

Dynamic FP&A: The Role of Planning

by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"

We live in an unpredictable world where the future is uncertain. If it was then we would all make a fortune by making strategic ‘bets’ on certain outcomes – we would know what products and services to back, what level of stock and staffing to have, and when and where to market our capabilities for maximum effect.

But the world is not like that. When we use the word ‘unpredictable’ or ‘volatile’, what we are really saying is that the mechanisms we use for predicting the future are inaccurate. Things happen that we either didn’t foresee, or that impacted differently from what we expected. Most of these ‘things’ are typically external and beyond our control. For example, a competitor changing their price, a company introducing a disruptive technology, the impact of natural events such as the weather, a change in government policy, a significant change in the local economy, or a combination of any of these. However, senior executives are expected to navigate their organizations through all of these challenges. They are charged with ensuring that limited resources are allocated to the right products and services for maximum return. That the organization is moving towards long-term strategic goals and to provide a reasoned explanation as to when, where and how it expects to get there.

Rolling Forecast: 7 Factors for Success

By Larysa Melnychuk, Managing Director at FP&A Trends group

The concept of a Rolling Forecast is a hot topic in FP&A at the moment. Many companies attempt to implement it, but not all of them are successful. Statistics suggest that one in five of the organisations that implemented rolling forecasts recently have since abandoned them, because they proved to be more complex than initially expected. Additionally, they didn’t find enough value in this tool to continue using it.

However, a Rolling Forecast can be a powerful tool for FP&A if used correctly..

Evolving FP&A: Should the Budget be Abandoned?

By Larysa Melnychuk, Managing Director at FP&A Trends group

In a rapidly changing business environment, the traditional, out-dated budgeting mentality is being challenged more and more. Target negotiations, political games and biased planning processes cost companies a lot of money. These conventional budgeting practices are non-value adding and need to be abandoned if organisations want to stay competitive in this dynamic business environment.

While the process of moving away from a traditional budgeting mentality is painful and slow, it is happening around the globe. The question is, are we ready to abandon the traditional budget completely?

Pages