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Winshuttle and ACCA's Global Budgeting & Planning Survey 2013


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Through our joint campaign with ACCA we managed to get more than 1800 people to respond to our questionnaire. The survey reveals the top budgeting tools, problem areas, accuracy rates, and more.

Published in: Economy & Finance, Technology
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Winshuttle and ACCA's Global Budgeting & Planning Survey 2013

  1. 1. Global Budgeting & Planning Questionnaire 2013 - Findings Heroes who transform the way their companies work. 1 Copyright Winshuttle 2013
  2. 2. Social Sharing Click the Twitter button throughout the presentation to easily share stats and quotes with your social network.
  3. 3. ACCA Survey Response Overview Membership participation ACCA members Non ACCA members 4% Budgeting in a nutshell is the planning of company activity with the capability of controlling resources and analyzing results achieved during the course of the plan. Top participating countries 27% 3% 4% 5% 6% 96% 1806 participants 4 108 countries
  4. 4. Survey Respondents’ Budget Responsibility 47% 20% 23% 24% 14% 5 Less than a quarter of the respondents own the entire budget process. Which provides more room for complications, more revisions, more cycles and long decision cycles for budget approval for the rest of the survey respondents. 26%
  5. 5. Core Accounting Systems In Use 573 504 366 113 58 53 40 30 26 A surprising number indicated that they only use Excel. 6 23 21
  6. 6. Budget Management 40% More than half indicated that they start their budgeting season with a formal announcement, which is consistent with a centralized approach 37% 18% 16% 11% 4% By division 7 Centrally Regionally By location Globally Other
  7. 7. The Budgeting Process 80% start budgeting 3 – 6 months before the end of the financial year 90% finalize budgets in less than 5 cycles 1 year out Other 9% 2% 5% 5% Yearend 1 month out 8 37% 43% 6 months out 3 months out
  8. 8. Top 3 Budgeting Methods Incremental budgets were in use by almost 40% of respondents and in theory take less time to approve because they generally require approvals more on deltas than on the actual numbers which are often inherited from previous years. 23.00% 35.00% Incremental Activity based Zero based 32.00% The surprising budget method was zero based budgets - historically they have been particularly popular in the public sector as a whole whereas in the private sector they are often limited to administrative overhead activities 9
  9. 9. Challenges with the Process Key Tools Used 90% 38% 29% 10 16% 9% Manageability Issues • • • • 32% reported actual-budget variances of >10% 54% feel the budgeting frequency is just right 21% have no plans to change budget frequency Only 52% were happy with the status quo
  10. 10. Finance Disruption by Budgeting Frequency The fact that half were satisfied with their budgeting process is most likely due to the flexibility of Microsoft Excel and the simplicity of getting budgets compiled only once a year. Over half of the respondents felt that the budgeting process was not disruptive to finance operations. Not sure, 16% No, 53% 11 Yes, 31%
  11. 11. Discoveries through analysis What are the relationships between responses and the analysis of the discoveries reveled? 12
  12. 12. Dependence on MS Excel • 90% of respondents use MS Excel as a key technology • 49% of MS Excel users have no other tools yet are satisfied • 41% use email in the process • Only 12% have workflow Findings: Data collation and coordination remains a major challenge with the process Companies still depend heavily on Microsoft Excel for budgeting & planning 13
  13. 13. Budget Cycle Time The majority of budgets take a long time to complete. Around half took longer than 3 months and a large portion of those with long budget cycles actually had variances of actual vs. budget greater than 5% • 49% take 3+ months to complete • 86% with long cycles have a actualbudget variance of > 5% • 57% have 3 or less budget cycle iterations per budget Budget iterations add time to the budget cycle and we determined that over half of the respondents have 3 or fewer budget cycle iterations. Even with a low number of iterations though, budgets seemed to take a long time to finalize. 14
  14. 14. Multi-participation Budgets often have many levels of participation • • • • • • 11% have >5 levels of approval Banking & Public Sector dominate 80% have <5 cycles of revision 75% used a specialised tools 39% find budgeting disruptive 33% dissatisfied with the process Complexity results in business disruption even with tools and this can lead to significant dissatisfaction 15
  15. 15. Budget accuracy Businesses have problems with budget inaccuracy • 27% indicated actual-budget variance of 10%+ • 25% felt this was improving • Variance issues with centrally managed budgets – 59% identified indirect costs – 43% identified direct costs • 50% felt the budget frequency was just right Data collation and commitment to the process were indicated as the greatest challenges Implementing rolling budgets seem for the most part to be absent from future plans 16
  16. 16. Budgeting more frequently Moving to more frequent and rolling budgets will improve budget accuracy • 8% use rolling budgets • Banking, Healthcare, Media, Mining and Professional Services dominate in this segment • 33% use formal tools in the process • Variances in actual-budget remain high – >10% reported by 26% – 5-9% reported by 46% Using tools doesn’t seem to improve precision but it appears to make rebudgeting easier 17
  17. 17. Conclusions • • • • • 18 Rolling budgets remain rare Excel spreadsheets remains a No.1 budgeting tool Managing and collating data is a problem area Formal budgeting tools are not commonplace Even when used, budgeting tools don’t improve accuracy
  18. 18. The Winshuttle Advantage Business process improvement Historical data extraction Data & procedure distribution Data collation ERP synchronization Workflow & control Process standardisation Participant/approver hierarchy Approval process transparency Hierarchical approval 19
  19. 19. Customer story • • • • Founded 2002 Total revenue of $233M 600 employees Maintain ~12,000km of High Voltage power transmission lines and 280 substations in Alberta, Canada November 16, 2007 20 KP06 (Yearly forecast) COcontrolling; updating cost elements 8 hours manually per cycle 30 mins to build 2 hours to setup for uploading Minutes to run KP06 (Quarterly forecast) COcontrolling; updating cost elements 4 hours manually per cycle 30 mins to build 1 hr to setup for uploading Minutes to run
  20. 20. Winshuttle’s Surround Strategy Use Excel, SharePoint, Web, mobile, PDF for efficiency. Systems of Engagement Daily and periodic tasks completed more easily. Provide automation solutions while leveraging existing skills and infrastructure. System of Enablement Autonomy for business users and improved control by IT. Ease your ERP data creation or changes. Systems of Record 21 ERP Increase ERP ROI and user satisfaction. Increase the quality and detail of audit records.
  21. 21. Winshuttle Value Winshuttle License & Maintenance Investment $2,741,080 Support Desk Savings $2,487,190 $2,202,250 Productivity Savings Annual Training Savings Initial/Ongoing Development Savings Deployment Savings Year 1 Year 2 Year 3 Estimated value for one customer: Graphing actual transaction data against Winshuttle’s database (based on experience with nearly 2,000 customers) calculating the potential time and cost savings. 22 Annual Savings
  22. 22. Where to next? Find out how Winshuttle can assist your: SAP Finance processes - visit SAP Master Data processes - visit Learn more about Winshuttle’s no-programming products and solutions: View or register for a webinar View a product demonstration Explore the Winshuttle TV YouTube channel Browse the Winshuttle Community site Find out more about the challenges that companies faced, decisions they made, and the benefits they realized by implementing Winshuttle: Read a case study on one of our customers. 23 For a quick reply contact
  23. 23. Be a Winshuttle hero. Thank you. 24