7 Steps 
                  to a Better Budget



Lawrence Serven
President
XLerant, Inc.
Desired Outcomes


• Faster process
• Fewer mistakes & rework
• More buy-in from the organization
Step 1: Default spreading to last
years’ actual pattern


 • Divide by 12 Syndrome
 • Explaining YTD “Timing Variances”


...
Step 1: Default spreading to last
years’ actual pattern
Step 2: Head off
“I forgot to budget”


 • Managers “forget” to budget line items
 • Mad scramble to get those missing dol...
Step 2: Head off
“I forgot to budget”
Step 3: Automate
standard calculations


 • Miskeyed formulas
 • New rows or columns break formulas
 • Not all users Excel...
Step 3: Automate
standard calculations
Step 3: Automate
standard calculations
Step 4: Create an approval flow
before it reaches you


 • That’s not my number
 • Minimal operational review of budgets b...
Step 4: Create an approval flow
before it reaches you
Step 5: Automate your
headcount interview process


 • Complex process
 • Typically 60%+ of all expenses
 • Miscommunicati...
Step 5: Automate your
headcount interview process
Step 6: “Baseline & Earmark”



 • Hard to see how the dollars are really budgeted
 • Just comparing “G/L Account 43-5640”...
Step 6: “Baseline & Earmark”
Step 6: “Baseline & Earmark”
Step 6: “Baseline & Earmark”
Step 7: Shorten the budget cycle
For more information




               info@XLerant.com
                  203/328-3787
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7 Steps To A Better Budget

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7 steps to a better corporate budget

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7 Steps To A Better Budget

  1. 1. 7 Steps  to a Better Budget Lawrence Serven President XLerant, Inc.
  2. 2. Desired Outcomes • Faster process • Fewer mistakes & rework • More buy-in from the organization
  3. 3. Step 1: Default spreading to last years’ actual pattern • Divide by 12 Syndrome • Explaining YTD “Timing Variances” • Base monthly spread on seasonality • Make it the easy default choice
  4. 4. Step 1: Default spreading to last years’ actual pattern
  5. 5. Step 2: Head off “I forgot to budget” • Managers “forget” to budget line items • Mad scramble to get those missing dollars included somewhere • Check box for each line item • Budget not marked “complete” until boxes are checked
  6. 6. Step 2: Head off “I forgot to budget”
  7. 7. Step 3: Automate standard calculations • Miskeyed formulas • New rows or columns break formulas • Not all users Excel experts • Have the system do the calculation based on user choice
  8. 8. Step 3: Automate standard calculations
  9. 9. Step 3: Automate standard calculations
  10. 10. Step 4: Create an approval flow before it reaches you • That’s not my number • Minimal operational review of budgets before being sent to Finance • Finance department left holding the bag • Built in approval workflow • Electronic “fingerprints”
  11. 11. Step 4: Create an approval flow before it reaches you
  12. 12. Step 5: Automate your headcount interview process • Complex process • Typically 60%+ of all expenses • Miscommunication, misinterpretation, misunderstandings • Automate your interview process and have the system perform the work
  13. 13. Step 5: Automate your headcount interview process
  14. 14. Step 6: “Baseline & Earmark” • Hard to see how the dollars are really budgeted • Just comparing “G/L Account 43-5640” budget versus prior year doesn’t tell you much, but… • …There’s a risk of user error by doing more than plugging in a number into a G/L account field • Create baseline budget • Make it easy to add line item detail, layer on a project, add comments – and make it easy to report on that level of detail
  15. 15. Step 6: “Baseline & Earmark”
  16. 16. Step 6: “Baseline & Earmark”
  17. 17. Step 6: “Baseline & Earmark”
  18. 18. Step 7: Shorten the budget cycle
  19. 19. For more information info@XLerant.com 203/328-3787

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