Are you following these Budgeting Principles
Quantrix is definitely the best business modeling and analytics solution for companies today. The best part is that with Quantrix that only thing that companies need to focus on is the budgeting principles. We have outlined below the budgeting principles that go hand in hand with Quantrix.
First Quantrix budgeting Principle: You budget is primarily a measuring stick, not a forecast. The real forecast should be set in your strategic plan. Thus the annual budget is only useful for filling in details which we can track against. Furthermore, do not waste your time and only budget a line item if your accounting system can report against it. As with everything else in business, the budgeting exercise is useless if you cannot track progress against the budget numbers. And that is the greatest part about Quantrix; you can always track your progress.
Second Quantrix budgeting Principle: avoid excessive detail. Pareto was right: 80% of the issues are in 20% of the items. When budgeting, identify and focus on the high-impact items for your business only. Build the discipline to let other items remain lower priority. There’s a limit to how detailed the budget should be. Getting down to each pen or paperclip is not useful... However with Quantrix it is possible to get that level without the work. Quantrix is built with the view of working smarter not harder.
Third Quantrix budgeting Principle: other categories should also follow the 80/20 rule. One recent client was budgeting over forty items for each department. Relatively simple analysis showed that only 15 categories accounted for 90% of expenses. By moving their budgeting over to Quantrix the client was able to automate the 25 categories that accounted for the 10% of expenses. So Quantrix helped him spend his time where it was required.
Fourth Quantrix budgeting Principle: plan often. Annual plans are a relic of a bygone era. Conditions change rapidly and require us to respond rapidly. Fortunately, we have the technology like Quantrix to do so. Your budgets should be re-set quarterly and the annual budget process should not be significantly different from the quarterly budget forecast.
These principles will work for any company, but if you are looking to get the most out of your time then the only principles that companies should have is to use technology like Quantrix where ever possible. If you have never seen Quantrix, click here to view Quantrix in action.