Tag Archives: Budgeting and Planning

SF Magazine: Budgeting Revisited

6 things to consider when innovating your budget: 1. Corporate Culture 2. Comprehensive Approach 3. Strategy & Scenario Planning 4. Relative Target Setting 5. Compensation System 6. Flexible Planning Read More at SF Magazine >

SF Magazine: Strategies for Global Operations

“A well-designed, functional, and comprehensive budgeting system is an essential management tool for a multinational business. As we discussed, these companies must forecast the impact of global external variables (like foreign exchange and interest rates) as well as internal variables (transfer prices, supply-sourcing subsidiaries, production sites, etc.). All in all, the budgeting system should be […]

SF Magazine: Managing International Operations in Uncertain Times

“It’s also evident that foreign currency exchange rates, interest rates, and inflation inherently carry an element of uncertainty and volatility, which represents risks that financial professionals must manage in order to better forecast, monitor, and control the performance of their organization’s international business operations.” Read More at SF Magazine >

CFO Dive: Zero-based budgeting makes a comeback, but it’s different this time

“A ZBB-like review of expenses can lead to better analysis of the activities that support the customer,” Bryan Lapidus said. “This could be a huge value-add to the business by helping to assess profitability of products and services accurately, and be more meaningful than simply reading down the list of contracts in a general ledger.” […]

FP&A Trends: Let Traditional Budgeting be a Victim of this Pandemic

“Instead of annual forecasts of things that cannot be predicted or controlled, with December 31 as the fictitious deadline, companies should monitor the reality on a regular basis and work more with trend analyses and unbiased (mathematical) forecasts.” Read more at FP&A Trends >

Global Banking & Finance Review: The Impact of Covid-19 on Planning

“The Hackett Group’s EPM Performance Study revealed that top-performing FP&A organizations have invested more in technology, which has enabled them to run more analysis and deliver reporting faster and more efficiently. Of top performers, 67% have implemented a primary financial planning and forecasting system to consolidate corporate and country, region or BU information.” Read more […]

Rethinking the Business Planning Process

“Many plans and budgets are now based on outdated assumptions and data, requiring FP&A teams to rethink the annual business planning process. Discussions with FP&A leaders, CFOs, and Deloitte’s Finance Transformation and Human Capital professionals, suggest several factors have led leaders to challenge the traditional process, including the need for constant scenario development and modeling; […]

CFO Priorities for 2021 Includes Digital Transformation

“After surviving the initial wave of the pandemic, many organizations obtained a real-world view of how far along they were in their digital transformation journey. In many cases, the verdict was “not nearly as far as we thought we were.” Although most companies have automated processes, fewer have optimized that automation; fewer still have deployed […]

Raw Material Annual Spending – Is it Relevant for Your Budget?

by Ganesh Subramanyan When calculating the total spend on raw materials in your annual budget, do you evaluate the spending level for varying volume, mix, or inventory assumptions? My guess is no because changes in these areas are irrelevant to the total profits for the year. When budgeting, most calculate gross margin by just subtracting […]