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3 ways to Automate your budget process

Tis that time of year again when the leaves change colors and the temperatures change.   With the change of mother nature comes the beginning of budget season.   The favorite time of every manager and finance department to start budgets and try to forecast what is going to happen the next year.   There are several ways forecast what is going to happen.  One of the most common is to take last year results and to increase revenue by x % and then then reduce the cost by y%.   My question is does that really happen.   I know from my experience that many times it is the opposite of what we really do.   The question we all want to know is how can I automate and get the best picture of what is going to happen.    There are several ways you can forecast but we will only cover 3 of them.   If you would like to discuss more please let me know and we can discuss all of the options.

 

  1. Strategy and Data Science – The first one is probably one of the most important because you need to know where your company is going and how you are going to get there.   Then you can use many of the data science tools to help not only  where you have been and what are the factors or variables behind your past results and why you got those results.    Then also forecasting based off of the strategy and many other factors to help not only drive financial result but operations and C level decisions that need to be made to make sure we stay on track.  These tools are the key to really generating a great budget that investors and stakeholders are going to want to see.   Not just what we want to present but really what is going to happen with the company.

2.  Data base tools – This is the gaining access to your budget tools.   If you can unrestricted access to your data and be able to use the tools in key #1 and then start to see what has happened historically and then combining that with R&D and many other features  or products that you might be offering  and what has happened to those products in the past and what will happen this year and the years to come.    The data base tools is really makes #1 work as you start to use the tools from data science and start to drive the kind of reports you want to develop.   If you do not  have access to this data or know how to use it then you will be very limited into your budget process.  You have to access to the data both on a detail level and also on a overall view.

3. The last one is the automation of the data tools, data science, and strategy.   When you combine all of these tools together and start to use many of the workflows or other tools that area available to many of these systems.  Then you can start to automate the process because you can use things like excel or other spreadsheets because they are the most common but you can also use many of the features that are part of the advanced systems.  The great part of this step is that it does take time to set up but once you have it automated then you will pretty much be able to do whatever you are want with your budget and make it do circles or jumping jacks.   That is the power behind all three of these.  System is that you will have a budget that is power and one that you can easily change as the live data comes available for you.

 

As you see the processes are not terribly hard to use or hard to use .   There are several professionals that know how to use these tools and is really powerful and gives you access to your data in new ways that you have only dreamed of before.   As you do this you will wonder why you did not do this sooner.   If you would like to talk about how these tools work together or talk about your needs in your company.

AR Automation

AR Automated

One of the biggest problems that companies run into is that they can not collect the cash fast enough.   They have looked at many options for their business and many of these are going to charge 3 to 5 % of the cost of the invoice and many other cost associated with trying to collect on invoices.   One of the things that we have done here at Prediction Accounting is that we have cut the AR turns in half and reduced the collection time to basically their terms.    We know we can do this and is very easy process to be able to do this.   We have over 15 years of experience of setting these up in multiple industries.    Let us help you and show you how this can be done.   First of we automate the process of creating the invoices and use technology to ensure that they received the invoice.    We then follow up with a email to ensure that it is in the system and find out when it will be cut.   Then about 2 days before the check is to be cut we contact the customer again and ask if it is to be scheduled and ask for a follow up email with a check #.   Then we watch the money come in.    This is the general process and changes by industry and by need but we can help you automate your collection process.  We can either do it for you or teach your staff how to do this and give them the tools they need to make this happen.

Collection Process

AP Automation

AP Automation

One of the biggest headache for management is not having AP done in a timely manner.  This is very frustrating at the end of the month when they need to get reporting done.   Then you have vendors that are wanting to get paid and you also have purchasing department that cannot get materials in because of lack of payment to vendors.    This is a huge problem and seems like would be a easy fix and in reality it is but the problem with the easy fix is that it cost a lot of money to do AP Automation.   You might need to have approvals or other things to make sure that the AP is getting put into Accounting Software.   That is when Prediction Accounting comes into play and gives you the options that you are looking for.   So, the way that the AP Automation works is that the invoices are either sent by email or uploaded and then sent by email.   We will then work on a collaborative document to make sure that these are valid expenses and are approved to be put into the system.   During that night these invoices will be automatically coded and a CSV or a API connection will be created.   Then when you arrive in the morning and look at your accounting software you will notice that the AP invoice is in the system.    Then based off their terms you will determine when we will pay these.   We will also set up analytics and predict when the invoices will be paid.    Then we can either cut the checks and perform the wires for you or you can do them.   This is a value added service so you only pay for the services that you use and feel like we are contributing to your business

Vendor Cycle