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Budgeting

While business planning often covers several years, budgeting usually refers to the budget for the following fiscal year, generally divided into monthly or quarterly periods. In addition, the aggregation level of planning is usually significantly higher than for budgeting. If only profit and loss lines are addressed during planning in many cases, budgeting also includes a breakdown into individual revenue components such as regions, customers or products. The cost components are also broken down in significantly more detail and allocated in particular to responsibilities such as cost centers.

Introduction of Meaningful Budgeting

Our services in the area of budgeting will be particularly useful for you if

  •  Budgets simply do not exist and a budget has to be prepared in the first place.
  •  Budgets consist solely of an income statement without a balance sheet or cash flow statement
  •  Budgets consist of an income statement, balance sheet and cash flow statement, but they are not integrated and therefore do not take account of mutual interdependencies.
  •  Budgets are not sufficiently detailed to allocate revenues and expenses according to responsibilities or according to monthly or quarterly periods
  •  Budgets are produced in MS Excel and the functionalities of MS Excel such as formulas or VBA are not sufficiently used
  •  Budgets are produced in MS Excel, but MS Excel reaches its limits due to, for example, susceptibility to errors or data volume.

Project Approach for the Introduction of Reliable Budgeting 

Our budgeting services include:

  • Analysis of the business model, value drivers and stakeholder requirements for deriving the budgeting
  • Design of integrated budgeting with consideration given to the interdependencies between the income statement, balance sheet and cash flow statement
  • Support in the software selection for a budgeting tool
  •  Implementation of the integrated budgeting model in MS Excel or a new budgeting tool

If you are interested or have any questions, please contact us.

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 Jürgen Diehm Partner
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 Nikolaus Färber Partner