Vast amounts of management and accountants’ time are invested right across the country in this exercise. Yet, within months the whole exercise is revisited, and then forecasts are performed.
Have you ever worked out how much is invested in the budget process? We estimate that for a hypothetical company with 500 staff, the personnel costs are between $310,000 to $400,000 (based on 42 working weeks a year).
The real costs to the organisation are however considerably higher as critical resources are being tied up, which could be making money.
Is there a better way? From the waymark solutions studies, participants* are finding ways to improve the budget process.