Effective business budgeting is a stepping-stone to increased profits, but how do you avoid the pitfalls like misallocation or unforeseen circumstances leaving you vulnerable? In this post we’re looking at how to budget-better with cloud accounting…
Setting a budget provides the financial plan to allocate resources to projects and departments for initiatives and campaigns. Analysing historical data and predicted trends enables a business to plan ahead and align resources with achieving goals for the upcoming year or period.
But setting and sticking to a budget isn’t without a set of challenges, such as inaccurate or insufficient data or inflexibility when making decisions.
Can cloud accounting software help businesses create better budgets?
Aside from a lack of quality data, other problems with budgets can affect the entire organisation in a variety of ways.
Managers run the risk of focusing so hard on keeping within budgets, focus is diverted away from other key areas like customer satisfaction.
Changes in circumstances can suddenly make targets seem out of reach, with the danger of staff losing motivation – particularly if hitting target equals a bonus or commission!
Setting a budget too low can also pose a problem; for example, not striving to go above a sales target if it’s easily achieved or developing a culture of ‘use-it-or-lose-it’ when spending is below the budget towards the end of the period.
Best-in-class cloud accounting software Sage Intacct delivers real-time visibility into performance and on-demand reporting at a granular level – improving live tracking of budgets vs actuals, helping businesses keep their budgets on track.
The budget you set will only be as good as the data you’re using to set it, so having access to reliable, accurate and timely data is essential to setting an effective and realistic budget.
True cloud financial management system Sage Intacct displays data via permission-based dashboards, in a customisable format combining graphs, charts and easy-to-view layouts.
Intacct’s powerful real-time reporting capabilities are unmatched when it comes to on-demand reporting by whatever dimension you need; report by location, time period, customer, project or your chosen criteria all via an internet-connected device.
The ability to track a budget against actual performance in real time is vital, granting you the opportunity to adjust or tweak plans as and when necessary.
Intelligent, intuitive technology like Artificial Intelligence (AI) and Machine Learning (ML) powers Sage Intacct, enabling users to predict likely financial outcomes based on trends and use scenario-modelling options for more efficient, impactful forecasting.
Intacct is a highly configurable accounting solution, enabling users to build a complete financial management system and access all their data in one single system. Adding specific modules can help master budget management via features including:
Is it time to embrace digitalisation and take your accounting to the cloud? Explore more with a free Sage Intacct demo.Get a Sage Intacct Demo
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