Budgeting
Our budgeting applications are designed to :
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Shorten the budgeting cycle.
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Make the completion easier for end-users.
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Reduce errors (commonly found in Excel spreadsheets).
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Improve the reporting and comparative analyses of variances between actual and budget versions.
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Allow the maximum flexibility to budget the way you prepare budgets.
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Introduce budget results back into accounting systems, if required and allowed by system administration.
The simplest budgeting solution is one that is designed 100% for a top-down budgeting approach. The model basically incorporates the actuals from the underlying accounting system into a GL cube that has a version or scenario dimension. The scenario dimension allows for an infinite number of versions of the data. The simplest budgeting solution then may be approached by completing the budgeting version for the following fiscal period based on actuals for the previous. Many different options are available for completing a budget at a consolidated top-down level or the lowest granular level. Some of these spreading mechanisms include:
These are some standard mechanisms, but some other user-defined mechanisms are also possible. Having a version dimension works well, especially in circumstances where a rolling forecast scenario is required. Typically the rolling forecast is a combination of Actuals and Budget and is best depicted as below.
Budgeting applications may become more advanced by incorporating some granularity and additional calculations to calculate GL account details. The level of granularity is dependent on the needs of the organization. This detail budgeting in other words is budgeting below the GL account level. Some typical granular sub-modules found in a bottom-up budgeting model include:
A graphical illustration of such a model is shown here:
