Building and Managing Budgets with Confidence
Each year, Helen works with department leads and budget owners to shape the total budgets for the business. They include both ins and outs. With Approvol, detailed annual budgets can be submitted and approved in a single place. Revisions are tracked and traced with version control.
Moreover, throughout the budgeting season, the Budget Dashboard allows Helen to see the full picture over the budgets, along with forecast profit figures. It can even combine the budget views from different approval stages, such as merging newly submitted and approved budgets into a single view. This helps her greatly as she can immediately tell the difference a new budget will make upon approval, thus ensuring the business only commits to a total budget that works for the overall profit target.
Working Towards Profit Target
Throughout the year, Helen regularly revisits the Profit Forecast Report to see how the business is performing towards its profit target. This report gathers all the data points from monthly budgets, incomes, orders, invoices, and payments of the annual budgets to compile 3 types of profit forecast.
The first type is purely based on budget figures. The latter 2 take the actual figures from the previous month into account, and as they progress through the year, the additional data points continuously improve the accuracy.
Helen uses this report to monitor profitability performance. It gives her a real opportunity to capture potential problems at an early stage, allowing her valuable time to make necessary adjustments in order to stay on the track to achieving the profit target.
Cost Saving & Process Improvement
Businesses ride through highs and lows, but Helen is always keen to identify cost saving opportunities. From the Purchasing Dashboard, Helen can easily identify the Top Suppliers and the Top Purchasers for any given budget year. She has the ability to break down and classify large amount of purchasing data into departments, budget streams, and budget categories, in order to make comparison between budget years. This provides her with insight on where the cost saving opportunities are.
Having identified the opportunities, she can open dialogues with the top suppliers, or review internal spending profiles to understand the disparity of spending between groups.