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This article focuses on the importance of budgeting with a corporate performance management solution.
budgeting
Budgeting is a topic that is not very popular in many organizations. It can be an extremely time-consuming project for many employees. This is why it is important to communicate the significance of a budget to all employees so they take pride and ownership of it. Don’t make complex templates as the goal in estimating for the coming year. If employees can’t have small variances, then they will make decisions that only impact their results against the budget and not what is in the best long-term interest of the organization.
Your budget should should be an approximate estimate of how the company will do in the coming year. Provide information on how investment money can be spent. This is based on the strategies and initiatives of the company. The goal should not be to budget down to each dollar.
For example, one company budgeted down to an employee cost of $6.52 per month per employee. The company was asked whether the cost could be estimated as a total for each department, but they claimed they needed it down to the dollar. However, budgeting at the department level and allowing a five percent variance would have had no impact on the decisions that the company made. Another important item to ask yourself is “what is an acceptable variance for an organization?” For instance, if there is a five percent variance in the revenue, then would this impact the decisions that the company will make in the coming year?
 

Personnel Budgeting Template

 
Personnel budgeting has an immense impact for organizations due to the high proportion of costs of an organization. A personnel budgeting template has similarities across all companies. There are many variables to consider, such as the type of raise, how many raises, overtime, bonuses, commissions, taxes, benefits, and IT costs to name a few. It is also important to know whether to budget by employee or by position.
Budgeting by position enables an organization to ignore employee names, terminations, and having to hire employees to replace a terminated employee. It also allows budgeting by multiple employees. As an example, a template can allow a manager to input how many accountants should be employed, what the average salary is, and what the average raise would be. If a company is budgeting by employees then each accountant should be listed. The employee’s exact salary, his/her expected raise, and all other information specific to each employee should be included as well. Budgeting by employee will be more accurate if there is little employee turnover, but it also requires more work.
Other items to keep in mind with personnel is how to allocate monthly salary, which impacts tax and benefit calculations. Allocate salary evenly by work days, by calendar days, and by pay periods. There are other ways as well. Another item to consider is separating out full-time and part-time employees, as there may be differences in the benefits that are allocated to part-time employees, such as overtime and 401k. These are all calculations that must be built into the payroll form.
 

Assumptions Template

 
A great first step is creating an assumptions template, which allows an administrator to enter data. This will impact the calculations of many templates, and it does not have to be hard-coded into the templates themselves. This data will flow from the form into all other templates. An assumptions template should include payroll tax rates, a worker’s compensation rate, and a benefit rate. The number of days in each month also matter.
The data from the assumption form will then flow into the payroll form.
There may also be a need to allocate an employee across multiple departments. In this case, there are two options: 1) Budget every employee to a “dummy” department and then allocate the salaries, taxes, and benefits in new template. 2) Upload the employee information into each department and enter the number of hours allocated to each department. This ensures there is an administrator report that checks to verify that an employee does not exceed 2,080 hours a year.
Many companies use another template called the capital expenditures template. This particular template allows users to enter capital expenditures that are projected into the coming year. This also calculates depreciation, typically on a straight-line basis. The asset type is typically chosen because each asset type has a specific life. A capital expenditures template should include asset type, department, purchase description, purchase month, purchase price, and quantity. The capital expenditures and the monthly depreciation are summarized at the bottom of the template.

More information

If you would like to get a better understanding of the budgeting templates above, you can download the free ebook here. Beyond using the right templates, it is important to have the right team and infrastructure in place to implement a successful budgeting strategy. Take the time on the front end to set budgeting goals that line up with your overarching organizational goals.
We also recommend to ask for help! By asking for help within the right channels, you can ensure the right sounding board that can guide you through the process with minimal time wasted and designed for maximum efficiency. At Solver, we have a team of experience professionals that have taken on countless projects like this one. Between the power of BI360 and their expertise, you have all you need to set yourself up for success.
Solver enables world-class decisions with BI360, a leading web-based CPM suite made up of budgeting, reporting, dashboards, and data warehousing, delivered through a web portal. Solver is reinventing CPM with its next generation solution. BI360 empowers business users with modern features including innovative use of Excel in the model design process. If you’re interested in learning more, our team is excited to hear about your organizational needs and goals.

This article discusses corporate performance management (CPM) tools and examples of effective strategy, goals, planning, and analysis. 
 
budgeting, reporting, data warehouse, power bi, dashboards
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This article focuses on the importance of internal process improvements and KPIs.

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What to Expect Plus Tips to Help You Take Advantage of All Focus 2018 Has to Offer

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This article will continue the discussion of improving these tasks and processes and ensuring that the strategy is aligned with the reporting, planning, and analysis.
 

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The excitement for Dynamics 365 Business Central is growing, and organizations will need a CPM tool to achieve Reporting and Budgeting that enables world-class decision-making.

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Making world-class decisions is imperative for any organization to succeed, and the ability to do it quickly and efficiently gives a competitive advantage. This also includes the ability to quickly use new solutions, such as Dynamics 365 Business Central. Achieving quick results when implementing or making changes to a system provides confidence among the team, provides momentum for future tasks, and generates excitement. The excitement for Dynamics 365 Business Central is growing, and there will be many implementations over the next few years. Additionally, organizations will need a CPM tool to achieve Reporting and Budgeting that enables world-class decision-making.

Enabling world-class decision-making involves many areas for organizations. The first is to ensure that all employees have access to the data that meets their needs. Employees in finance and accounting need general-ledger and sub-ledger data while a warehouse manager requires inventory data and an executive needs specific key performance indicators (KPIs) across the organization. Secondly, the data presented should be easy to access, quick to view, and highlight areas of impact. Providing reams of data will not allow an employee to make quick and accurate decisions, but it will if the data is provided in a way that emphasizes the information that affects their decisions. Third, it is imperative to be able to access the detail data in a clear and concise way from Dynamics 365 Business Central. This allows the employee to research information quickly and effectively to determine issues, research questions, and make sound business decisions.

The question that may arise is, how do we do this effectively and efficiently? Effective reporting has standard reports that are mandatory for all businesses, such as Income Statements, Cash Flows, Balance Sheets, and similar financial statements. The second part of effective reporting is to have reports that provide KPIs, Benchmarks, or other similar decision-making metrics. The KPI reporting takes longer if this is not currently a concentration in the organization, as this requires interviews, data analysis, and mocking up examples.

However, the ability to rapidly implement and create the key financial and operational reports for Dynamics 365 Business Central is critical for all organizations. A separate CPM reporting product will provide many additional features that ERPs do not have, such as having a separate reporting data warehouse, which allows for easier slicing and dicing of data for reporting analysis. It also allows combining data from multiple data sources to do combined reporting and analysis.

At Solver with BI360, in as little as one hour, we are able to implement a starting package of reports and budget input templates in the cloud, from Dynamics 365 Business Central. We call this BI360 Cloud QuickStart. By bringing the data and General Ledger dimensions into the data warehouse through a connector and using an automation tool to set up the hierarchies for the Income Statements and the Balance Sheet, you can have data quickly ready for reporting and analysis. With the ability to import data trees into the BI360 Cloud, the forms and reports are able to run quickly. Your forms and reports are ready to distribute across the organization with minimal cosmetic changes, such as adding the company name, company logo, etc.

BI360 Cloud QuickStart comes with a Budget input template, a Forecast input template, Balance Sheet, Income Statement Trending, Income Statement Variance, Trial Balance, and a KPI report that has graphs for Cash, Accounts Receivable, and many margins, such as net income margin comparing actual to budget.

By implementing QuickStart or similar solutions, a company can be up and running with Reporting for Dynamics 365 Business Central very quickly. This rapid implementation provides a quick win and shows the power of implementing a CPM tool. By getting a quick return on investment, you can set the stage for doing additional implementation throughout your company and gain the full power of a CPM tool like BI360.

If you are a Dynamics 365 Business Central user and you are looking for a CPM tool to achieve reporting and budgeting, BI360 may be a good fit for you. Solver enables world-class decisions with BI360, leading web-based CPM suite made up of budgeting, reporting, dashboards, and data warehousing, delivered through a web portal. Solver offers BI360 through cloud and on-premise deployment and is reinventing CPM with its next generation solution. BI360 empowers business users with modern features including innovative use of Excel in the model design process. If you’re interested in learning more, our team is excited to hear about your organizational needs and goals.

This article will concentrate on improving these tasks and processes and ensuring that the strategy is aligned with the reporting, planning, and analysis.
Read more