Traditionally, budgeting and planning have tended to take place at the start of the year, whether that’s the calendar or the financial year. That might be a one off session, or series of sessions, that are designed to evaluate the performance of the past 12 months and to create financial plans and budgets for the next 12.
However, as technology continues to make an impact in terms of increasing the pace of change across the business world, leaving such a large gap between budgeting and planning sessions could be problematic. For many organisations it’s now obvious that ongoing budgeting and planning hold the key to business success.
A year-round requirement
Business management is something that never stops – it’s a year round requirement that any business owner knows they must constantly stay on top of. So, it’s often puzzling why so many of the same people are happy to leave budgeting and planning either to an annual or quarterly event.
However, given the fluid and fast way in which sectors are evolving today, it’s becoming clear to most that attention must be turned to these crucial elements of business success much more frequently. Being able to continuously integrate financial and operational data, as well as analytics, into every process and strategic decision can make those decisions much more accurate and effective and provide a considerable competitive advantage.
The benefits of ongoing budgeting and planning
Many organisations have already made the switch to an ongoing system of budgeting and planning and those businesses have a tendency to outrank their peers by around 70% when it comes to profit and revenue. So, the benefits of investing in this kind of ongoing process are clear just by looking at the bottom line. There are a number of other key benefits to engaging in this kind of process, including:
- Ensuring that the business is putting resources and energy into the right directions and is not focused on the wrong opportunities
- Reducing the level of uncertainty within the business, even eliminating it completely in places
- Improving efficiency and the way that the business is run on an ongoing basis
- Enabling a much more agile approach to business, for example making strategic changes to take advantage of key opportunities, as and when they arise
- Ensuring that there is clarity when it comes to financial planning, budgeting and forecasting. Confusion and ambiguity with respect to the figures can significantly slow a business down and mean that opportunities are missed or potential issues are just not spotted early enough.
Key to being able to benefit from ongoing budgeting and planning is having the right tool with which to manage this process. It’s crucial to find software, for example, which will integrate with existing systems and is customisable to the specific needs of the business in terms of the processes, forecasts and reporting requirements that exist.
SunSystems is ideally designed to help businesses engage with ongoing budgeting and planning in a clear and efficient way – it is easily integrated and provides a range of options to suit the way the business is run and the goals it has. Get in touch with FinanSys on +44 (0)20 7456 9830 today for more information.