The business environment is more competitive than ever. Organisations today demand resilience in their operations to pre-empt and respond to the challenges and opportunities in a competitive market place. To maintain competitive advantage, organisations must adopt a more flexible business orientated approach to budgeting.
The answer, and I believe the future of budgeting, is the forecast. Focusing more on the forecast, if properly aligned to operational planning, will clearly provide up to date information to allow more confident decision-making.
The following articles promote the forecast as the primary tool to meet and reflect business needs, placing it front and centre of business planning. Finance functions must facilitate this change: grasp the mantle, announce budget limitations, promote the forecast and become true commercial business partners.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.