(from FEI Daily) As finance professionals across the board begin the process of preparing their annual budgets this fall, many may be asking themselves: Is there a better way? Consider these four practices:
- Understand the Value of Historical Data: Historical data must be used for predictive budgeting and for understanding what drives business growth.
- Connect Your Data: Data silos make it incredibly difficult to collaborate with cross-functional stakeholders, leading to unreliable budgets and forecasts.
- Know Your KPIs: Understanding which factors most contribute to your company’s growth will let you know exactly where to allocate your resources for a better chance of success.
- Stick to a Flexible Plan: Finance teams today understand that changes are sometimes necessary—whether that means introducing rolling forecasting, a flexible budgeting process or scenario modeling to let you course correct your budget when necessary.
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