Spend Matters welcomes a guest post from Romu Gaboriau of b-pack.
In today’s economy, many companies are looking for ways to improve their budget management practices with the main objective of increasing their spending visibility and control.
Following our last post (Procurement and Finance: How to Close the Budget Loop), in which we invited you to take a brief survey, we have gathered data from over 100 participants. We then complied and analyzed the data to identify trends.
The objective of that survey was to better understand how organizations forecast, plan, and execute their budget. In that report, you will discover the best practices from companies of diverse industries and sizes, leading to better spend management as well as greater control and visibility. It covers different topics such as budget structure, execution, planning, and budget control.
We encourage finance and procurement professionals to read the report to achieve budgeting best practices.
Here are some key data of the report:
The number of budget levels used in an organization shows how detailed a budget structure is. The more levels a business uses, the more precise tracking and reporting will be. Almost three-quarters of survey respondents (74 percent) reported using a budget structure of at least two budget levels. However, it is important to note the difference between SMBs and bigger organizations.
Budget preparation can take up to several months, depending on the company’s structure and size, as well as the number of budget levels used. The survey reveals that for 75 percent of organizations, it takes less than three months to prepare a budget using a purchase-to-pay solution, compared to 65 percent of organizations that do not use such solutions. Purchase-to-pay solutions offer benefits that make the budget preparation process easier.
According to the survey results, almost half (47 percent) of organizations report tracking their budget in real time, while a much smaller 4 percent report tracking them only at the end of the year. These results confirm the growing need for visibility. The survey also reveals that when using a purchase-to-pay (P2P) solution like b-pack, 50 percent of the organizations report tracking their budgets in real time, while only 35 percent of non P2P users do.