Following various research reports, nine of ten documents generated by business calculators include errors. Most of them occur due to the human factor which can be easily avoided. Likewise with most applications, the calculating software (e.g., Microsoft Excel)is used manually. Thus, human error occurrence is possible in any of your calculations, e.g., entering the wrong numbers or copying inappropriate amounts. So, is it always true that these calculators do not cause any additional difficulties? Hence, is the Microsoft Excel we usually choose the best way for budgeting?
Although Excel has a lot great functionalities, there are some difficulties we face whilst budgeting:
- A lot of formulas.
- Big quantity of sheets.
- Not always clear which budget version is the relevant one.
- Complex update after changing data and reports forms.
- Complicated to monitor and control the budget in comparison with the factual data or upon the change of circumstances.
Advantages of Microsoft Dynamics 365
To make the budgeting process easier, Microsoft Dynamics 365 enterprise resource planning systems will help you not only to increase your data accuracy and save time, but also to observe any changes as well as to simplify the confirmation processes. So, what are the advantages of budgeting with Dynamics 365?
Budgeting period
The Dynamics 365 budgeting system allows to prepare the long-term strategic plans (3-5 years’ budgets), annual budgets, and rolling budgets (4-5 quarters).
Budget preparation process
Particularly, this process defines how the budget plans are prepared, updated, reviewed and confirmed within the organization. The budget preparation process is individual for each and every company. The most widely spread models are difined as the budget preparation “top ‘n’ down” and the budget preparation “bottom ‘n’ up”. Your organization can configure its own budget preparation process. IIn the Dynamics 365 budgetting module, you can create your own process, describe tasks and work progresses, the way the budget preparation data moves across departments and within. Also, automate the budget plan confirmation across the organization hierarchy.
Budget plans
Using the Dynamics 365 budgeting system, you can easily prepare multiple budget plans, adjust them and change. Additionally, you will have the budget change and/or adjustment history.
Budget preparation sources
In order to create a successful budget plan on how much you will need to earn or to spend in the upcoming year, you need accurate data, i.e., factual data on previous 1-3 years. The budget plans can be generated from various data sources, particularly integrated into Dynamics 365 dedicated for finance and activity:
- General Ledger transactions.
- Fixed Assets forecasts (CAPEX).
- Project forecasts.
- Products and service supply forecasts.
- Supply forecasts.
- Earlier prepared budgets’ data.
Budget control
The budget execution control is completely integrated into the Dynamics 365. This allows to control budget not upon the end of the month when we compare factual data with the budget data, but at the moment we plan the new purchases or expenses. Moreover, Dynamics 365 allows to limit operations input if it exceeds the budget. In Dynamics 365, it is possible to restrict the entry of transactions if they exceed the budget.
Budget reports
Fast and comfortably generate the budget execution report where the budget amounts are compared with the actual expenses, all the accumulated invoices are displayed as well as the final total amount.
We believe that our budgeting process is easier and simpler. So, we will provide you with all the needed information about budgeting possibilities with Dynamics 365.
Why GO-ERP?
At GO-ERP, we have been successfully helping companies turn their vision for the future of their business into reality for twelve years! We have experience in projects in more than 25 countries worldwide. Our expertise, innovation and international experience enable us to make a significant contribution to our clients’ business success. Together, we can change the way you run your business. Contact us and our experienced experts will be happy to share their expertise and accelerate your company’s digital transformation.
