Budgeting and Forecasting

We tend to view Budgeting and Forecasting as Financial planning; typically bottom-up, prepared and submitted by multiple owning profit and cost centers.  It is usually an aggregation of all operational parts of the business, and often incorporates Balance Sheet and high-level Cashflow planning as well.

We distinguish this from Operational Planning, which we see as more about the detailed operations of a particular segment of the business, more closely dealing with non-financial metrics and short-term operational decision-making, rather than medium-longer term financial impact.

There are all sorts of interesting discussions to be had about Budgeting and Forecasting, and how to implement an EPM solution that fulfils the need within your organisation.

  • Is your Budgeting and Forecasting business logic the same?  If not, should it be?
  • Does your organisation do Rolling Forecasts, or hard-stop at Year-End?
  • Is the Forecasting process about future prediction?  Gaining new insight?  Hitting the Budget number?
  • Is the level of detail in your Budgeting/Forecasting process right / wrong / useful / a burden?
  • Is the Budget process a natural result of Forecasting activity, or a significant additional burden on the organisation?
  • Who bears the 'pain' of the Budget process?  Finance?  Everyone?

The tool of choice for implementing Budgeting and Forecasting solutions is Hyperion Planning.

If it sounds like we're speaking your language, Please contact Nigel Dahl through LinkedIn using the button below, or call him now on +44 (0)7799 664165.

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Who's behind epmgurus?

Nigel Dahl

Nigel Dahl,

Managing Director of epmgurus, brings 30 years of diverse experience to bear in helping organisations and teams through change – of size, structure, systems, management or ownership.

Nigel has run, advised, supported or worked with Finance functions from one-person operations up to globally dispersed Finance departments of several thousand people. He knows what good (and bad!) looks like.

View Nigel Dahl's profile on LinkedIn

What is EPM?

Enterprise Performance Management (EPM) is a broad term covering any business process that seeks to improve performance through a continuous loop of data collection, reporting, analysis and, most importantly, informed and targeted action.

In practice, Finance EPM is generally considered to cover at least Strategic, Financial and Operational Planning, Budgeting and Forecasting, Management Reporting (MI), Financial Consolidation, Statutory Reporting, Profitability and Cost Management, including Cost Allocation.