Diagnostics of the current system of budget management

Project aims:

• To assess how effective the system of budget management is;
• To improve the current system of budget management.

Project objectives:

• To analyse and organise the information on the status of the budget processes within the clients’ company on an “as is” basis, i.e., the prevailing methodology and practice of budget management;
• To identify additional (not yet implemented) customer requirements for the budgeting system and reporting related to the budgeting processes;
• To form recommendations for improvement or refinement of budgeting processes;
• Determine the list of tasks and the amount of investments for the automation of the budget process.

Project stages:

• Introduction to the company:
• Strategy;
• The organisational structure;
• Business processes;
• Management Accounting
• The analysis of the existing budget management system:
• The composition of the system;
• The financial structure;
• The budget structure;
• Types of budgets/reports;
• The formalisation of processes;
• The regulation of processes.
• Preparation of documents “Report (conclusion) on the budget management system”

Methods for:

• An introductory list and analysis of documents requested by the client
• Preparing a list of questions for the clients’ respondents and analysis of the resulting responses;
• Analysis of the information received;
• The co-ordination of recommendations on the improvement of the budget management system.

Project results:

• An expert opinion on the current system of budget management;
• Recommendations for improving the current system of budget management;
• A structured list of tasks for the modification of an existing information system (or the selection and calculation of the investment for the automation of the budgeting system).

The value for the client:

• A systemic vision of the problems in the current budgeting system;
• A structured list of areas for the improvement of budget management;
• Mitigation of management risks when planning.