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Many companies come across variations in the execution of what is planned and budgeted. The non-alignment of antiquated budgeting processes with the actual execution of the plan results in breakdowns. By leveraging the elemental capabilities of theNetSuite Planning and Budgeting Tool, your finance teams can have greater visibility into the activities, resources, and metrics that matter the most.
Driver-based Budgeting with NetSuite helps thriving organizations link their business activities and financial forecasts. Business leaders can evaluate the business drivers that impact financial performance and leverage driver-based budgeting to steer high transparency across departments.
The finance teams need to work closely with business leaders to identify all those relevant drivers that help improve impact business performance. In most cases, key drivers will vary as per the industry and the company.
Key Drivers may include:
- Finance: Revenue Per Headcount, Cost Per Headcount, Net Cash Flow
- Sales: Average Sales Prices, Total Customers, New Logos, Opportunities
- Human Resource: Onboarding, Turnover, Cost Of HR Per Employee, Employee Performance
- Customer Service: Customer Satisfaction Score, Resolution Rate, Time To Resolution, Churn Rate
- Marketing: Website Visits, Email Click-Through Rates, Lead-To-Customer Conversion Rate.
Some other business drivers may include economic and market conditions, competitor positioning analysis, and inventory.
Financial Planning with Driver-based Budgeting
- You can create business plans and models that help you pay undivided attention to drive high operational performance.
- It lets you identify operational metrics, and cause & effect relationships between drivers and financial outcomes. For instance, you can focus on revenue or expense items in your P&L model or the balance sheet.
- Also, it allows you to ink the projections for expenses to revenue trending as well.
You can forbid conventional budgeting with inaccurate data and gear up your financial planning with Driver-based Budgeting in NetSuite to meet evolving business requirements without a hitch.
Considering the operational challenges in the advancing business world, particularly due to the COVID-19 pandemic, it’s high time for growth-seeking and prompting finance companies to revamp their approach to budgeting and planning. Many are now turning to driver-based budgeting and reaping substantial business advantages.
Benefits of Driver-Based Budgeting
- Focus on profit-driving data and elimination of unnecessary data.
- Quick adjustments of financial plans and insights for cohesive communication.
- Quick access to internal or external changes that help the finance team to analyze drivers and share with budget stakeholders in real-time.
- Vital business processes from across the organization allow finance to truly take on the role of a business partner. This enables active stakeholder engagement in improving business performance as well.
- Ever-simplified data collection by focusing on specific inputs.
Driver-Based Budgeting with NetSuite
NetSuite Planning and Budgeting tools allow you to enhance your ability to manage and analyze finances using driver-based income statements, balance sheet and cash flow planning, or modeling deeper detail for revenue and expenses planning.
Business leaders can easily synchronize their NetSuite transactional data and chart of accounts with NetSuite Planning and Budgeting for budgeting, forecasting, and reporting purposes. It readily eliminates the need to make manual updates in multiple places.
Financial Planning with NetSuite Driver-based Budgeting delivers the collaboration, greater control, and high visibility to better manage the complete budgeting process using a one-stop solution. Today’s finance management companies can make the most of such inventive tools to drive greater scalability, drive growth, and improve financial planning.
Considering a change from running the operations on outdated and complex systems can be an intelligent move. Additionally, a certified NetSuite Partner in India can let you explore it across all the major verticals, be future-ready with advanced solutions, and unveil opportunities to lead the competitive edge.
Serving in the field of cloud computing solutions for more than a decade, inoday has won accolades for its exemplary services, willingness to respond, and industry-specific expertise to do away with operational bottlenecks. As an accredited # 1 Oracle NetSuite Partner in India and recently acclaimed as India’s Top Solution Provider by NetSuite, we would assist you in executing your business vision efficiently and driving unrivaled scalability.
inoday is always committed to progress and innovation.
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