Real-Time Budgeting: How to Know When You’re Ready to Make the Shift
The COVID-19 pandemic disrupted economies globally. As infections increased, supply and productivity dwindled while preemptive measures, such as layoffs, simultaneously drove down demand. As uncertainty mounted, many businesses cut unnecessary spending and froze budgets completely, testing the entrenched assumptions and static planning processes of financial departments and exposing the need for dynamic planning capabilities. Enter real-time budgeting. In this eBook, we’ll take a look at if your organization is ready to make the shift over to real-time budgeting and how Bridgepoint can help determine the best budgeting method for you.
- Real-time budgeting relies on financial planning quarterly or semi-annually, making room for organizations to re-evaluate shifts in business and opportunities to determine where to best allocate resources.
- To benefit from real-time budgeting, a business should be able to practically redeploy resources according to the updated plan.
- If your organization is already implementing periodic rolling forecasts, the transition to real-time budgeting is more realistic.
- Businesses that can implement real-time budgeting effectively will be able to realize opportunities at a faster rate than their competitors.