Budgeting

Definition: A systematic plan for the expenditure of a usually fixed resource, such as money or time, during a given period: A new car will not be part of our budget this year.

Budgeting is the aspect of planning where a fixed dollar amount of money is divided up across the business with the purpose of achieving the corporate plan. This is an annual process that all corporations - big and small - go through. It defines how a department plans on spending a fixed dollar amount in such a way as to still successfully accomplish its departmental objectives.

Issues with budgeting:

• Not interactive - done in individual excel workbooks
• Separate budgets for expenses (Fixed and Variable), CAPEX, and Salary Planning
• Individual budgets rolled together at Corporate level, departmental managers do not get an overall sense of total picture until it is too late
• No integrated ticks and ties to Revenue Forecasting

An example of this would be the expense of a new sales person: although the expense is tangible and can easily be translated into an expense, there is also an inherent value to that sales person with increased (although delayed) sales volume that needs to be addressed in the revenue forecasting model.

leverages years of experience implementing enterprise wide budgeting models that are easy to administer, and drive value across the organization by being interactively tied to the rest of the planning process.