Budgeting of revenues and expenses
Budgeting the revenues and the related cost of goods sold is an art form. If you automate this process through the Budgeting app doesn’t mean you will loose in flexibility, but instead you will gain time and will eliminate the errors inherent of a complex Excel file system.
You have at your disposal all the elements of a complex budgeting process: countries, divisions, distribution channels, products, services, tailored price lists, specific discount levels for each distribution channels or product or service. The cost of goods sold is budgeted based on the same products structure as the revenues.
While the app offers a high level of complexity for budgeting revenues, you can set your own desired level of detail.
Budgeting capital expenditures
No budget plan is complete without a capital expenditures plan. This area of the app allows you to create a list of capital expenditures for each individual project, to schedule the expenditure on the months of the year and to automatically compute de depreciation and amortisation expense based on the estimated commissioning date.
Expenses are budgeted on cost centres and expense categories in order to allow for an efficient control. A best practice is to empower the individual cost centre managers to build their own expenses budget and then validate it with their directors. This process allows the managers to truly assume responsibility for their own budget and to be truly engaged in managing the business.
Special attention is allocated in the app for budgeting salaries. These are managed for every employee and cost centre, for existing employees as well as for future new hires. All elements that influence salaries expenses are considered: base salary and any changes, overtime hours, bonuses and all related taxes. There is total flexibility over the structure of payroll related taxes, in order to allow for accurate budgeting in case of any future changes.
The app’s functionalities are as follows:
Integration with the other CRAFT Solutions apps
The budget created within the Budgeting app is automatically imported in the other Craft apps which use budgeted information, speeding up the reporting process and eliminating human errors.
The interconnection with the Finance Craft – Reporting app allows the automated generation of reports like Profit & Loss, Balance Sheet and Cash-Flow for the budgeted period.