This is the beginning of a blog series on understanding the risks of your current planning, budgeting and forecasting process. For the next 11 weeks, we’ll be posting a new article every Wednesday that will look at the challenges of the budgeting process and how to solve them with budgeting best practices.

Every business goes through the planning, budgeting and forecasting process to set up and measure their goals throughout the year.  As a business grows and changes, this process becomes more complicated, which can lead to mistakes.  Discussed in detail in 21 Ways Your Budgeting Process Puts Your Business at Risk, there are several common ways that budgeting can go wrong, but there are also tips to help get it done right.

Data errors

Bad data can lead to bad decisions and data errors which are often found in spreadsheets.  Users could be:

• Working with outdated numbers
• Make grammatical errors
• Make mistakes with formulas and links within the spreadsheets

Pulling data directly from a centralized source will improve the integrity of your data and give managers confidence in the numbers they are using to make strategic plans.

Unsecured data and spreadsheets

Mobile employees can now use smartphones, tablets and laptops to enter and analyze data from anywhere, at any time.  Confidential data can be at risk of getting into the wrong hands or viewed by employees that aren’t permitted to see certain figures. Implementing security features offered within a centralized budgeting process can protect your data from un-realized threats during your business budget process.

Compromised data foundation

Several managers may be tasked to enter and analyze the data needed during the:

•  Planning
• Budgeting
• Forecasting process

Simple spreadsheets don’t offer comments that explain the reasons or data changes behind certain figures and it’s difficult to know who added or changed data.  A centralized system with clear, organized templates can streamline data entry and comments can provide insight behind the numbers.  Automatic notifications can remind managers to participate in the process and track participant efforts.

Uncontrolled processes

Detailed business budget planning, budgeting and forecasting processes often result in multiple versions of spreadsheets which can be confusing when determining which spreadsheets have the most current and reliable data.  A centralized process with templates can provide consistency and clarity to data entry, while audit trails can highlight when data is altered and why.

Streamline the planning, budgeting and forecasting process with a better budgeting solution.  Download 21 Ways Your Budgeting Process Puts Your Business at Risk to learn how a centralized solution can deliver simplicity, control, insight, and greater accuracy throughout your business budgeting process.  Contact us for more information about getting your budgets done right, with the right technology.