Prepare for budget season | NetSuite Solution Provider

3 Ways to Prepare for Budgeting Season

It's that time of year again - budgeting season has arrived. Finance teams strive to complete the annual budget before their company deadline — typically in December. The budget is crucial for companies to plan for the future and uncover opportunities to enhance profitability. The budgeting process needs to be accurate and efficient for the organization to succeed. To ensure a smoother process, organizations can take proactive measures to improve collaboration and efficiency. Read on to learn how to prepare and streamline the budgeting process.

1) Collaborate

Before getting too far into the budgeting process, planning and budgeting leaders across the organization need to sit down with executive leadership and reevaluate goals and expectations. What worked and what didn’t work in previous years? It’s crucial that leaders establish goals and expectations, then outline assumptions for achievement that they all understand and agree upon.

Once these goals and expectations are defined, planning and budgeting leaders must identify all stakeholders who will be involved in the budgeting process and when they need to be involved. These questions can help improve the budgeting process at its peak.

2) Data collection

Most planning and budgeting professionals can agree that collecting data from across the organization is a painful process. Many organizations house data in a blended mess of systems and isolated departments that make the budgeting process difficult. Any time data passes from one system to another, there is room for human error. Finance professionals can spend hours aggregating and reconciling data before proper budgeting can even begin.

Planning and budgeting leaders need to clearly outline all sources of data required for the budgeting process and establish a cadence of collection. Highlight areas of concern where where risk could exist and seek to close the gap. Many organizations turn to a single system that will aggregate all the data, enabling finance to have a comprehensive and agreed-upon view of performance for budgeting.

3) Tools

Efficiency is always top of mind. There is no one-size-fits-all solution, but here are several proven ideas and strategies to help your team not only survive but thrive during budgeting season.

 

Adopt new technology
Cloud planning and budgeting software solutions have completely changed the way planning teams do their budgeting and analysis. If you’ve never looked at a planning and budgeting software solution, now is the time.

Use simple templates for data collection
Don’t make it harder than it needs to be. Leverage simple and customizable templates that are easy for business partners to comprehend. This will improve collaboration between teams.

Dig into how data is collected
Is there opportunity to automate data imports? How does your team create and distribute information? Work with internal partners to streamline your data aggregation process.

Leverage rolling forecasts
A continuing trend in the world of finance, rolling forecasts enable finance teams to revisit budgets regularly and reforecast where necessary, based on new information. Typically, a rolling forecast extends 6-12 months into the future, giving businesses the agility to better allocate resources and prepare to manage through disruption.

 

It is crucial to start planning early for a successful and productive budgeting cycle. To avoid getting overwhelmed, gather your team and engage in an open and honest discussion. This proactive approach will pay off as you progress towards completing your annual budget.

How NetSuite Can Help

NetSuite Planning and Budgeting facilitates both company-wide and departmental planning with modeling capabilities, approval workflows, and reporting — all within one collaborative, scalable solution. A cloud-based planning and budgeting solution makes data accessible, in real-time, to everyone who needs to see such information. Accessibility boosts participation and accountability, making it easier to get meaningful input and engagement.

Contact us if you'd like to discuss implementing NetSuite Planning and Budgeting in your organization.

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This article was written by Rami Ali, Senior Product Marketing Manager at Oracle NetSuite, and was originally posted to the Oracle NetSuite Blog on August 5, 2020.