| In recent years, there have been numerous calls for | | | | At the present moment, there is no other alternative |
| company to move away from Excel-based Corporate | | | | software that could match the benefits brought by |
| Budgeting to Business Performance Management/ | | | | excel in budgeting. Budget managers assume they |
| Business Intelligence (BPM/BI) systems. Reasons cited | | | | have to operate within the limitations of Excel if they |
| include: | | | | want to continue using it as their budgeting tool. |
| | | | Now, we have developed a revolutionary method of |
| 1. Slow throughput time due to the complexity of the | | | | Excel-based Corporate Budgeting that we promise |
| budget. | | | | that will wow budget managers and make them want |
| 2. Challenges in maintaining data accuracy during | | | | to lay their hands on. We believe it's a solution that |
| consolidation. | | | | every budget manager must know, even those who |
| Despite the repeated summons to move away from | | | | are currently using BMP. |
| Excel-based Corporate Budgeting, today about 70% | | | | In this revolutionary solution, we retain all the benefits |
| to 80% of all corporations (from big corporations to | | | | contained in the current method of Excel Budget. We |
| small companies) continue to make use of Excel for | | | | just added more benefits and also remove the |
| their budgeting. So what makes these budget | | | | limitations contained in the current method of budgeting. |
| managers stand behind Excel and remain loyal to using | | | | |
| it as their primary budgeting tool? | | | | 1. Those who are working on the budgets do not have |
| The 6 Benefits of Using Excel for Budgeting | | | | to follow strictly to the layout by the budget managers. |
| The current method of Excel budgeting is not without | | | | They can change the sequence of the budgeting lines |
| constraints. However, the advantages for using Excel | | | | based on their preference. They could put advertising |
| as a primary corporate budgeting tool overshadow its | | | | cost on the first line in the template followed by |
| limitations. | | | | marketing cost and vice versa. |
| | | | 2. You can easily transfer the budgeted numbers from |
| 1. Excel provides budget managers with a lot of control | | | | the template to another worksheet and form a |
| on the format of the template. Budget managers can | | | | database simply by using formula. The database can |
| change the layout of template when the business | | | | be used to create pivot table for analysis and |
| environment changes. With a BMP/BI system, budget | | | | reporting. |
| managers have to give up the control to design a | | | | 3. Analyze the budget numbers from different |
| template that meets their business needs. | | | | perspectives. You can analyze them by products, by |
| 2. Budget contributors are familiar with Excel | | | | channels, etc. |
| spreadsheet that requires no or minimum training to | | | | 4. Prepare reports and charts by special links which |
| complete the template. However, they are usually too | | | | don't have to worry which line the item is located. And |
| involved in their operations to find time to learn another | | | | even when the item changes row or columns, you will |
| application which is used only a few times a year. | | | | still get the right numbers for your report. |
| 3. Budget managers and contributors could add new | | | | 5. No loss of details during the process of consolidation. |
| worksheets to store their workings and provide an | | | | The details from the lowest level i.e. numbers |
| audit trail on the basis for their budgeting numbers. | | | | submitted by the different business units are captured |
| 4. The number of people involved in the budgeting | | | | into the consolidated database. The consolidation will |
| process is not limited by the number of licenses paid. | | | | automatically update the budget numbers from |
| Anybody who owns a copy of Microsoft Office can | | | | different business units, add new rows, delete old items |
| be involved in the process. | | | | and also change the numbers as the numbers in the |
| 5. Companies do not have to constant upgrade their | | | | template changes. |
| software so that it will work with the latest operating | | | | 6. Consolidation can be as quick as a few seconds to |
| system. | | | | a few minutes, depending on the number of business |
| 6. It is expensive to own a BMP/BI, which cost at least | | | | units you need to consolidate. |
| $50K (conservative estimate) and beyond, not to | | | | 7. Analysis can be done at the highest level with the |
| mention that IT support staffs are usually required in | | | | lowest level of details. For example, you can analyze |
| maintaining the system. Using Excel for corporate | | | | staff cost by departments or even on a country level. |
| budgeting would relieve the company the problem of | | | | You can even prepare pie charts to show the |
| finding IT staff to maintain the BMP/BI system in the | | | | contribution from the different business units or |
| midst of a worldwide IT staff shortage. | | | | countries. |
| Limitations in the current method of Excel Budgeting | | | | |