Budgeting - CRAFT Solutions - for budgeting revenues and expenses

Budgeting is a cloud app for creating revenues and expenses budgets in an efficient and flexible way, using collaborative system which involves the management of the company.

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.

Budgeting expenses

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:

CLOUD

The app is based on cloud technology and can be hosted on our Microsoft Azure servers, as well as in the customer’s intranet for maximum security.

COLABORATIV

The company’s management can be directly involved in preparing the budget by using our collaborative app, allowing them to fully assume responsibility.

CONFIDENTIALITY

Access is granted to the various area of the app based on individual username and password, so that confidential information like salaries are kept safe.

SCALABILITY

The complexity level for budgeting revenues and the related cost of goods sold can be set according to the own needs: countries, divisions, price lists, discounts, distribution channels, products, services.

COST CENTRES

Expenses are budgeted for individual cost centres and expense categories and we recommend that they are built by cost centres managers and not by the finance department (although both options exist).

HISTORIC INFORMATION

The history of expenses for two previous periods is available in the app, so that this information can be used as a relevant base for building the next period budget.

PAYROLL

Payroll expenses are budgeted on cost centres for each existing and future employees, for each month of the year, for each payroll component (base salary, salary changes, overtime, bonuses, etc.) and for each payroll tax category.

ANALYSIS CUBE

Budget and previous periods figures can be analysed in a data cube, which allows creating ad-hoc reports in the exact way an Excel pivot chart is created; The result of the budgeting exercise is summarised by the app in reports which can be customised by the user and which can be exported in Excel format.

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.