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Era Budget Management 4.0 To Change The Traditional Management Method

Finance is always at the forefront of the concerns of the Enterprises Owner. An ill management of financial budget will result in inconvenient consequences for the Enterprises and on the contrary, an efficient management will promote the Enterprises strong growth and development. 

Research shows that the effective operation of finance department will help the Enterprises increase 70% of revenue. However, the biggest challenge for the finance department is the efficient budget planning and management that always hinders the Financial Director.

Research shows that the effective operation of finance department will help the Enterprises increase 70% of revenue. However, the biggest challenge for the finance department is the efficient budget planning and management that always hinders the Financial Director.

With traditional planning methods, the level of satisfaction with accuracy, timeliness and ease of use of Excel in this work is relatively low. In addition, the precision of the estimation data is also a hard problem because almost all of these enterprises have difficulty in the estimation process, with only 10% of enterprises believe that the difference between practice and estimate is +/-2%.

The limitations of the old planning and budgeting modalities are:

Mostly people who plan estimations or budgets in Vietnam rely on Excel, but in excel exists difficulties such as just 70% accuracy, Excel is not flexible enough to give an overall, multidimensional view. It depends on the data importer, is impossible to establish a financial plan or manage the budget according to the mechanism.

Excel does not exist the ability to analyze assumptions “what if”, nor have possibility of detailed analysis. It takes a lot of time for Excel users to synthesize, statisticize or plan. They take quite a bit of time from other departments to make statistics, data processing. The interface of excel is not user friendly, needs skilled personnel to work effectively.

Besides, budget planning is not visual, the planners must rely on monthly statistics. But if the plan is based on inaccurate data, over time to stasticize, the effectiveness of the plan and performance will decrease. Among the above factors, the high working intensity and long data processing time are the two leading elements, with the statistics up to 76% and 75% of enterprises.

So, in order to increase feasibility and change the traditional way, the only possible way is to apply technology solutions, change modality and plan budget management by software solutions:

Technology helps plan budgets to assist in the implementation of strategic steps by connecting the relationship between financial planning and budgeting with business plan and strategy, thereby increasing the accuracy of the amount of estimation data and integration of financial procedures to increase the performance of work.

The software modules will help the Enterprises statisticize data, so that managers get a comprehensive view of the costs associated with materials, labor, services, etc. Prepare a budget report that compares the initial cost with the actual cost of each project.

To manage all payment scenarios: plus cost, fixed price, time and documents, milestone payments and contract specific prices. Modify the rate of resource payments by project, project task, advertisement space item, employee, and account group.

Save time and costs for employees, partners and contractors can import man-hour records from anywhere using any device with a browser. Synchronization is also integrated into the software to help all departments get detailed data without losing the time to copy and statisticize.

However, technology is not a miracle, but it needs a smooth combination of CFO – strategists and controllers – and performance management solutions – support tools and information centers for the whole process.

Refer to our solutions Here

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