Description
A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.
Corporate Budgeting
Supporting strategy & financial management
The purpose of budgeting
Strategy Company and business unit budgets give financial expression to strategy, motivate managers to achieve commonly understood targets and provide a coherent framework for the analysis of results. However, many companies suffer from poorly conceived or inefficient budgeting processes which do not stimulate achievement of targets and are of little value for operational management.
What are the benefits of effective budgeting and how can you realize them?
PwC can help you to address the issues by analyzing and redesigning the budgeting process in line with company strategy and reporting needs, giving the following results: Reduced budgeting cycle time, including streamlined consolidation procedures Increased detail and relevance of budget categories Definition of strategic success factors and organizational performance indicators A methodological basis for implementing budgeting software More efficient use of Finance resources.
Critical Success Factors
Common shortcomings in the budgeting process
Among the most frequently encountered issues in the corporate budgeting process are:
Operational Plan
? Diverging interpretation of budget categories among various group
companies, subsidiaries and business units, makes consolidation iterative and error-prone
? Excessive use of top-down or bottom-up budgeting processes, irrelevant to
Financial Plan
Results vs. Budget and Investment Plan
The Budgeting Cycle
grass-roots requirements or not aligned with company strategy
? Lack of clarity and consistency in budgeting procedures, responsibilities and
timelines
? Failure to follow-up and analyze variances ? Definitions of revenue, cost and balance sheet items which do not reconcile to
Budget & Investment Plan
financial or management reporting definitions and requirements
? Inability to deal transparently with intra-period changes to budget assumptions ? Excessive manual processes that create an administrative burden.
Corporate Budgeting
Supporting strategy & financial management
Our Project Methodology
Project Management & Quality Control Understand business objectives Identify reporting requirements Define procedures & methodology Conduct training & pilot implementation Support rollout & continuous improvement
Who to contact?
PwC’s Corporate Budgeting solutions are created by an established team with experience in financial and management reporting solution delivery and with comprehensive experience of working in Ukraine Tel: +8 (044) 490 6777 Fax: +8 (044) 486 4558 Anna Ovdienko Director [email protected] Felix Yaroslavskiy Assistant Manager [email protected]
Budget Ownership & Participation Strategic objectives Critical success factors Organisation chart Responsibility centers Management reports Reporting items Key performance indicators Budget timeline and roles Document & data flow Calculation methodologies & standard adjustments Consolidation principles Transition plan Communication and training workshops Issue identification User help desk Methodological updates Compliance monitoring Follow-up training
Software Solutions
Historically, spreadsheets have been used as the main budgeting tool. However, they have a number of weaknesses when used for budgeting, including reconciliation problems arising from complex links across many sheets and workbooks, and inflexibility of reporting structures. A number of software applications are available today to counter these problems. Not all are highly expensive yet they are designed to be flexible and to take the hard work out of data capture, calculation, consolidation and reconciliation, thereby allowing more time for the value-added functions of analysis, review and control. PwC is familiar with a number of local providers of such software and can assist in system selection and specification. We always choose vendors and software with a proven track record and comprehensive local support and training for the application.
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Con t
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Ef
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l ro
veness cti fe
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Va l u e
Our credentials
With each new project we successfully complete we are constantly updating our credentials. Please contact us for up to date details of our recent Corporate Budgeting experience.
Im
p ro ve m e n
t
doc_821413899.pdf
A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.
Corporate Budgeting
Supporting strategy & financial management
The purpose of budgeting
Strategy Company and business unit budgets give financial expression to strategy, motivate managers to achieve commonly understood targets and provide a coherent framework for the analysis of results. However, many companies suffer from poorly conceived or inefficient budgeting processes which do not stimulate achievement of targets and are of little value for operational management.
What are the benefits of effective budgeting and how can you realize them?
PwC can help you to address the issues by analyzing and redesigning the budgeting process in line with company strategy and reporting needs, giving the following results: Reduced budgeting cycle time, including streamlined consolidation procedures Increased detail and relevance of budget categories Definition of strategic success factors and organizational performance indicators A methodological basis for implementing budgeting software More efficient use of Finance resources.
Critical Success Factors
Common shortcomings in the budgeting process
Among the most frequently encountered issues in the corporate budgeting process are:
Operational Plan
? Diverging interpretation of budget categories among various group
companies, subsidiaries and business units, makes consolidation iterative and error-prone
? Excessive use of top-down or bottom-up budgeting processes, irrelevant to
Financial Plan
Results vs. Budget and Investment Plan
The Budgeting Cycle
grass-roots requirements or not aligned with company strategy
? Lack of clarity and consistency in budgeting procedures, responsibilities and
timelines
? Failure to follow-up and analyze variances ? Definitions of revenue, cost and balance sheet items which do not reconcile to
Budget & Investment Plan
financial or management reporting definitions and requirements
? Inability to deal transparently with intra-period changes to budget assumptions ? Excessive manual processes that create an administrative burden.
Corporate Budgeting
Supporting strategy & financial management
Our Project Methodology
Project Management & Quality Control Understand business objectives Identify reporting requirements Define procedures & methodology Conduct training & pilot implementation Support rollout & continuous improvement
Who to contact?
PwC’s Corporate Budgeting solutions are created by an established team with experience in financial and management reporting solution delivery and with comprehensive experience of working in Ukraine Tel: +8 (044) 490 6777 Fax: +8 (044) 486 4558 Anna Ovdienko Director [email protected] Felix Yaroslavskiy Assistant Manager [email protected]
Budget Ownership & Participation Strategic objectives Critical success factors Organisation chart Responsibility centers Management reports Reporting items Key performance indicators Budget timeline and roles Document & data flow Calculation methodologies & standard adjustments Consolidation principles Transition plan Communication and training workshops Issue identification User help desk Methodological updates Compliance monitoring Follow-up training
Software Solutions
Historically, spreadsheets have been used as the main budgeting tool. However, they have a number of weaknesses when used for budgeting, including reconciliation problems arising from complex links across many sheets and workbooks, and inflexibility of reporting structures. A number of software applications are available today to counter these problems. Not all are highly expensive yet they are designed to be flexible and to take the hard work out of data capture, calculation, consolidation and reconciliation, thereby allowing more time for the value-added functions of analysis, review and control. PwC is familiar with a number of local providers of such software and can assist in system selection and specification. We always choose vendors and software with a proven track record and comprehensive local support and training for the application.
rfo Pe
Con t
rmanc
Ef
e
l ro
veness cti fe
PI
Va l u e
Our credentials
With each new project we successfully complete we are constantly updating our credentials. Please contact us for up to date details of our recent Corporate Budgeting experience.
Im
p ro ve m e n
t
doc_821413899.pdf