Great business management involves having strong budget and forecasting processes. Depending on the size of your organization, there may be a dedicated finance team who is responsible for the budget, a single department if they have the highest expenses, or perhaps it is your operations manager who takes on the bulk of this responsibility. However, the biggest question is who is ultimately responsible for the planning and success of your organization’s budget? While it can be easy to point fingers at others, the realistic answer is everybody is responsible for it.
Great business management includes having great employees who work for your organization. Your team needs to be on the same page in operational alignment, and this most definitely includes finances. If one department keeps coming in over budget, this can lead to a deficit at the end of the year. On the flip side, if resources are allocated to a department, but they don’t get used, this can lead to a surplus. While this may sound nice, this “extra” money could have possible been used elsewhere in the organization to help drive growth.
Communication is key, and this ties into line item details and wording. Your accounting team may use different terms or language than the sales team. It is very important to make sure everyone is on the same page in order to reduce data redundancy. This will help save time and frustration later down the road.
As you can see, everyone needs to work together in order to ensure a budget’s success. Budgets should be strategic, and the management and responsibility shouldn’t just fall on one person. Everybody involved in the business is responsible for making sure accountability is upheld and that targets are met. In order to do so, employees need to clearly understand their role in the budget and what they need to do to make sure objectives are met.
Involving a large (or small) team in the budget process doesn’t have to be difficult. True Sky’s corporate performance management tool makes sharing budget responsibilities and communications easier than ever. We offer personalized workflow, as well as powerful data tools and integrations to your source data. If you’d like to learn more, give us a call today at 1 855 878 3759, or visit www.truesky.com.