Well built formulae create better budgets.

Do you ever feel like your budget is a little “off?” That’s because it probably is. When you build formulas into your budgeting process, you’re relying on unproven formulae that sometimes create errors, contain broken links and formulae that can be altered by others.

This can lead you to create inaccurate budgets and forecasts, which can have a huge impact on your business. In this blog post, we’ll discuss the benefits of building formulas into your budgeting process using a proven FP&A platform such as ProForecast.

Building formulas into your budgeting process has a number of benefits.

Firstly, you can more accurately forecast costs. This is because you’re using the most appropriate method of cost calculation, rather than simply inserting a value.

Secondly it creates consistency, eliminating random values or guestimates . It is essential though that your formulae are well built and accurate. If your using Excel there are some good examples and useful tips at www.agcapitalcfo.com/10-excel-formulas-we-use-in-budget-creation/

In ProForecast building formulas into your budget is a very simple process, these are proven and trusted formulae which can’t be broken by inexperienced users.

Examples of ProForecast Inbuilt Calculations

In Proforecast there are over 300 purpose built proven and tested business process templates, for instance if you can create your departmental cost budget using a simple drop down list that can be selected for each overhead, for example:-

i) a % of sales by company

ii) % of departmental sales

iii) % of salaries

iv) % of fixed assets

vi) a sum amortised over 12 months

vii) a seasonally amortised sum

viii) a cost per employee

ix) a manual entry

xi) an amortised value subject to a growth rate.

Advanced Calculation Features in ProForecast

In addition each overhead can make use of our step change function which enables the cost to be flexed up or down throughout the life of the budget or forecast and every cost can be further amended by selecting whether any type of prepayment and accrual.

This is a highly accurate and simple method of inserting reliable and tested calculations which will increase the budgets accuracy and if you operate a decentralised budgeting system will allow your departmental heads to build their budgets accurately without introducing calculation errors.

Book a demo using the button on our homepage www.proforecast.com/