Financial budgets are high-level estimations and calculations used to internally predict and allocate the income and expenses of a business. Setting up financial budgets for your business allows you to define cost and revenue benchmarks, which can help you identify financial strengths and weaknesses and set budget-related notifications. As the year progresses, you can run a comparison report to see how the company’s finances are pacing against what you have budgeted.
Power of Financial Budgets
With BQE CORE, not only can you track your financial budgets, but you can also compile all of this information into specified reports so that you can share data critical to the success of your company. Over time, CORE will help you establish a deeper understanding of the relationship between your earning and spending. It will also help you predict future budgets and growth modeling by providing historical data of past company performance.
The more detailed the financial budgets are, the more they allow you to set and compare performance at the account level. CORE pulls the profit or loss data of each account from the reference year and compares those actual values to the current budgeted values. This comparison helps create more accurate budgets for the future. CORE also tracks each account in the budget and informs you about the actual amount earned or spent, and whether the account is over-budget or under-budget.
Why use Financial Budgets?
Financial budgets are very informative for accountants, CFOs, project managers, and executives who need accurate financial information for forecasting, planning, budgeting, and setting projections for future financials. They help your company plan ahead so you can stay on top of your expenses and revenue. Financial budgets can be created and set monthly, quarterly, or annually.
Financial Budgets Setup
Financial budgets are created either from scratch or from an existing budget from the Financial Budgets screen. To create a new financial budget in CORE, check this article for details.
Financial Budget Reports
To pull a general report for a financial budget, go to Reports > Financial > Financial Budget to access an overview of the financial budgets set in your company. This report is organized by budget name and displays information, such as description, start date, end date, budgeted income, budgeted expenses, profit, class, etc.
Besides the general financial budget reports, CORE also offers some in-context, individual budget-level reports that can be accessed from the row-action menu > View Reports directly on the Financial Budgets screen. You can choose a report and then decide whether to preview, export, print, or email the information.
Review reports regularly to stay on top of your company’s financial health. Information about performance is updated in real-time in CORE, especially when related to time and expense entry, as well as the sending of invoices and receiving of payments. Knowing your cash flow helps your organization make better real-time decisions and take a more proactive, rather than reactive, management approach.
The winning strategy of any company or organization is to evolve your operations to be better, faster, and more efficient. Without good data, managers cannot measure growth or success. Likewise, companies cannot see opportunities to tighten operational productivity and increase profits. Either you manage your budget or your budget will manage you. For additional information on financial budgets in CORE, check out CORE Help Center.