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Many companies are still using old technology that deals poorly with newer budgeting issues like rolling forecasts, flexible budgeting, and analysis ... Modern MPC software applications address the processes of planning, budgeting, financial consolidation, reporting, and analysis. These applications transform data from an organizations business transaction systems or ERP systems into business-critical information that can be used to make sound planning and management decisions ...
A new methodology that reflects your management planning and control system and employs a robust budgeting software application to support that system can speed up and improve the budgeting process and connect plans directly with budgets. The result budgeting thats anticipatory, accountable, and relevant -- not a separate exercise divorced from the strategic plan, but an integral key for organizations seeking real competitive advantage.Successful companies see budgeting as the cornerstone to a closed-loop system for management planning and control (MPC). Such a system drives a companys quest for competitive advantage and consists of interlinked management processes -- of which budgeting is the central one -- that turn your strategic initiatives into plans and budgets that deliver the expected results ...
Budgets Help Achieve Competitive Advantage
Competitive advantage is all about understanding what you need to achieve to differentiate yourself, gain market share, or somehow leave your competitors in the dust ... You need to think through how to do it, what actions you need to take, and what resources are needed. The result of this major work is a very real plan. A budget based on reality, in turn, quantifies that plan and makes it very clear which resources youre moving from project X to project Y or what resources you need for a new project. And it makes the revenue expectations clear ...
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