Budgeting

While corporate planning often covers several years, budgeting generally refers to the budget for the following financial year, usually divided into monthly or quarterly sections. In addition, the level of aggregation in planning is usually significantly higher than in budgeting. Whereas in many cases only profit and loss account lines are planned in planning, budgeting includes a breakdown into individual revenue components such as regions, customers or products. The expense components are likewise divided significantly further and, in particular, allocated to responsibilities such as cost centers.
 

Introduction of effective budgeting

Our budgeting services are particularly useful for you if:

• Budgets simply do not exist and a budget has to be set up in the first place
• Budgets only consist of an income statement without a balance sheet and cash flow
• Budgets consist of a profit and loss account, balance sheet and cash flow, but these are not integrated and therefore do not take into account mutual interdependencies
• Budgets do not have a sufficient level of detail to allocate revenues and expenses according to responsibilities or according to monthly or quarterly slices
• Budgets are created in MS Excel and the functionalities of MS Excel, such as deformation or VBA, are not sufficiently utilized

• Budgets are created in MS Excel, but MS Excel is reaching its limits due to, for instance, susceptibility to errors or data volume
   

Project approach for the introduction of resilient budgeting

Our budgeting services include:

• Analysis of the business model, value drivers and stakeholder requirements to derive the budget
• Design of an integrated budgeting system, taking into account the interdependencies between the income statement, balance sheet and cash flow statement
• Support in the selection of software for a budgeting tool
• Implementation of the integrated budgeting model in MS Excel or a new budgeting tool

Please do not hesitate to contact us if you are interested or have any questions.