Budgeting System Creation

Our insights, tools and hands-on support help clients achieve their biggest goals

cCustomer description: You are a small to medium sized European company, (usually with a net turnover of 500.000 € to 15.000.000 € per year), who is no longer able or willing to make important decisions based solely on intuition.
Customer requirements: We prefer to work with firms that have an ordered system of bookkeeping and computerized internal accounting system. If there is an electronic system in place but it is not working as well as you wish, we can, as part of our service, provide recommendations on methods for more efficient internal accounting organization.


Description of the service:

Despite the fact that many budget spreadsheets are visually similar, their essence differs so we create a custom budgeting tool for your unique business and needs. During our work we delve into the specifics of your business, understand how your revenues and variable costs are connected and what the primary risk factors are for your company.
Budgeting System Creation

Benefits of AG Capital created budgets:

1. It becomes easy to adjust your budget as external and internal changes occur in your business. You will be able to redo your budget in a matter of moments with a few clicks of a mouse. You will be able to explore different possible scenarios depending upon numerous factors and then be able to take timely measures to take advantage of a beneficial occurrence or avoid disaster due to an unfavourable situation.

Budgeting System Creation

2. Files for performance analysis are linked to your accounting data and are filled in automatically. This means that in minutes you can create a new report that reflects performance and budget changes due to the new budget’s implementation.
Usually, budgets developed by us include the following functions (of course, depending on the specifics of your business):
• Separate profit and loss budget and cash flow budget;
• Balance sheet monthly forecast;
• A detailed monthly earnings forecast, by product group and structural units;
• A detailed forecast for the positions of company’s expenses;
• Forecast of the workers’ payment, which is pegged to the factors affecting it, (e.g., sales volume, the level of accounts receivable, etc.), with the possibility to quickly change the parameters of the payment system which automatically affects all the remaining aspects of the financial plan;

• The possibility to create a products procurement plan, taking into account the forecasting market situation and scheduled sales volumes;
• Calculation of the optimal inventory levels;
• Forecast of possible settlements with suppliers as well as the possible payment schedules for certain suppliers;
• Forecast of possible settlements with debtors, and the possible payment schedules for certain debtors;

Budgeting System Creation

• The possibility to quickly change the most important assumptions of external factors that influence the development of your enterprise, which will automatically will be reflected in all positions of the financial plan. Thus it will be possible to quickly analyse different scenarios and adjust your plans  depending on the situation;

• The model of budget execution analysis, which is pegged to the records of the accounting system of the enterprise. Data on the implementation is automatically exported from reports to an analysis accomplishment file;
• Other calculations connected with the problems mentioned above.

Following the development of the budgeting model, the company’s management, as well as all employees involved in the project, are trained to work with the budgeting system.