Is your planning, budgeting, and forecasting inefficient and disconnected from the rest of the business? You are not alone. Businesses across numerous industries typically need 30 days or longer and at least three cycles to approve annual budgets*. This creates a lot of overhead for finance and other business functions. Additionally, monthly or quarterly forecasting is often done manually, and results are often unreliable and quickly outdated due to fast-changing markets. In stark contrast, speed and agility are essential for businesses to keep pace in the age of Digital Transformation. Organizations need to be able to make fast, data-driven decisions. Budgets need to be adjusted promptly to new developments. Inflexible and inconsistent planning processes are a hindrance. They slow down responsiveness, resilience, and ultimately the growth of companies.
Advance your Digital Transformation journey with the right strategy and integrated business planning.
Vincent Van Der Heijden – Program Manager Digital Transformation Rotterdam University of Applied Sciences
With Metora, you create a common data foundation for planning, budgeting, and forecasting across the organization. All relevant data flows into a unified solution. This promotes consistency and transparency of your data as well as the processes based on it. Plan faster by automating workflows. From collecting and preparing data to forecasting, plan and budget data can be easily written back to source systems.
Jedox AIssisted™ Planning makes AI accessible to all users with intuitive wizards. Simplify and improve data preparation and increase the frequency, accuracy, and granularity of forecasts. This way, you always know where the business stands compared to plan. Plans and budgets can be adjusted in a timely and data-driven manner.
Better processes and more possibilities in performance management with Jedox:
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Planning, budgeting and forecasting are three key pillars of enterprise performance management (EPM). The purpose of planning, budgeting and forecasting is to translate strategy into execution via long-term or mid-term plans as well as short-term budgets and forecasts.
Finance uses planning to determine how the company’s goals are to be achieved. In addition, it ensures that the overall planning and the sub-plans of all individual business areas are consistent and free of contradictions. A top-down planning approach defines the strategic goals of the business and high-level activities required to achieve them.
Budgeting is the process of translating planning into financial data. A budget is a goal-oriented plan formulated in terms in numbers. Within the plan, a certain time period with a certain degree of commitment is predefined. A budget allocates resources aligned to meet strategic goals and targets.
A forecast tracks the expected performance of the business so that timely decisions can be made to respond to shortfalls vs. targets, or maximize opportunities. Forecasting goes beyond standard forecasts because finance uses both financial and non-financial information as well as simulation and scenario considerations.
Planning, budgeting and forecasting processes are typically managed by financial controllers or the financial planning & analysis (FP&A) function in the office of the CFO. Orchestrated by finance, PB&F involves multiple operational business functions such as sales, HR and supply chain to ensure that strategic objectives are met and financial targets are reached.