Part three of a blog series on budgeting challenges.
Use Technology to Tackle the Five Biggest Challenges to Budgeting
Make every dollar count for your organization’s future success.
3. Efficiently Manage Capital
Whether or not your organization has an official Capital Improvement Plan, utilizing a technology solution that keeps all involved departments constantly aware of the status of your multi-year capital projects budgets, including debt management and the impact on future cash flow, ensures these critical major investments and business continuity is managed efficiently and transparently. The software must allow subsidiaries/departments to easily prioritize and update their capital budgets annually and make any necessary adjustments to these long-term investment budgets, sometimes lasting two-three years or longer.
Capital investments often utilize a separate budgeting and planning process simply because the expenses are large, and the length of the projects are long; for example, a product development project needing developers, testers, sales and management teams. These projects can have material impacts on the future cash flow of your organization in both the short and long-term. The software system should be able to alleviate your project accounting challenges with spending thresholds that support the checks and balances you need to stay on track and accountable for your multiple project budgets.
Organizations need to continuously innovate and improve in order to remain competitive. The improvements attract new businesses and foster subsequent projects that keep the organization moving forward. The CFO/Board of Directors, however, do require transparency into the expenses and projected ROI, so your software system must be able to accurately report on the capital plan and future cash projections, confirming that these dollars are being spent responsibly resulting in a positive ROI.
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Click here if you missed part two!