Is your company budget template making your life easier, or harder?
There are five reasons why your annual budget template needs to be immediately upgraded.
And – despite what the ‘experts’ say, using an Excel spreadsheet is still one of the most effective ways to track, manage, understand and re-prioritize yearly budgets for your business.
This is especially true for businesses that already use CRM systems, and combine them with Excel in order to create neat, logical spreadsheets for inter-departmental budget management.
Here’s why your annual budget process needs an upgrade.
#1: Improved Collaboration of Multiple Departments
Collaboration and budget improvement go hand-in-hand.
When the two are disconnected, accuracy flies out of the window.
With precise financial projections, your company is free to achieve growth on all fronts, in every department. More can be done in terms of real-time resource availability and being responsive in an ever-changing market.
The right annual budget template eliminates inter-departmental issues, with transparent and ongoing team collaboration.
#2: Better Management Allows for Flexible Rolling Targets
Fixed budgeting can seriously distort annual sales targets.
Things like cash flow, capital investment and sales projections are all tied to upper level planning.
When your start up business budget template is fixed and scattered, without the necessary updates – your annual projections become misleading. This results in missed opportunities and money leaks. Instead, a rolling template ensures your data inputs are as accurate as possible.
Flexible management of your annual financial plan means greater control over key areas that could reveal high growth opportunities for your business in the coming year.
#3: Greater Data Reliability and Automation
When your data is unreliable, so are the decisions that you make.
An updated annual budget template should help you gather the right sources of information.
Whether these come from your CRM system, your individual teams or department heads – data reliability is important when determining successful financial outcomes for the year.
Your annual budget must take the right data sources into account, so that you can invest this data into a quality strategy with a degree of accuracy.
#4: Real-Time Decision-Making Fuels Growth
When you have accurate internal benchmarks, growth is easier.
With a template that encourages ongoing changes to your strategy, your decisions get better.
In the long term, these repeatable cycles create a powerful budget forecasting system. When you have access to in-depth insights you better understand the risks and opportunities involved and can grow in new directions.
A strong budget template inspires real-time decision-making for faster business results.
#5: Increase Future Revenue for Your Company
Frequent budget forecasting leads to increased revenue for your company.
According to Beyond Budgeting Roundtable, 64% of annual targets are obsolete in 4-6 months.
If you don’t have a way to automate and update the vast majority of your budget data, there’s an excellent chance you’re working with fabricated, irrelevant numbers.
These 5 reasons are why you need to upgrade your annual budget template this year. With new data sources, automation, and rolling forecasts on your side – your financial projections for next year will be more accurate than ever before.
Is your budget template giving you problems? Let’s chat.
10 years of corporate finance and forecasting experience at different technology startups across the US.
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