Web Budgeting Application Demo

This is the continuation of the transcript of a Webinar hosted by InetSoft on the topic of "Web Based Reporting, Budgeting, and Forecasting." The speaker is Mark Flaherty, CMO at InetSoft.

You will see that I have a Web budgeting application. This is really the same application. So in the first example we log on, and we were just presented with our entry sheets. When I click here, what you are going to see is really where we have taken the time to create much more of an infrastructure or an environment out of the application that fits the customer requirement.

The first thing you will notice that is I have some multiple tabs here, and these are more position specific or persona specific. I have an information tab that list my milestones so everybody can see what dates we are going to use, our schedule, some instructions for completing the budget, as well as some policies and procedures on what numbers should go in here, and how we calculate benefits and overheads. You will see that I have a budget holder.

I have a budget controller level. I have an analyst level and an administration level. So before I even get started here what would an administrator do? When they start new year, they might upload data from a previous year and populate it.

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Produce Some Budgeting Reports

They might want to produce some reports. They might want to actually set up specific entry dates. This is just a simple example. I don’t want to spend too much time with the administrator functions because these are really typically all the administrative tasks that you would do. If I come in now as a budget holder, this looks a little bit different from our first example where I was just presented with a little budget sheet. You will see that I have really what we call a Quick List or a complete schedule.

Then on the left hand side you will see more of an explorer type menu. I have data entry processes. I have processes that I do as a budget holder, and then I am given some budget reports that I can review. When we talk about a simple budget process, you would think that all the information would be in a single template which is sent out. But in reality a lot of times sales will be entered by one person, and expenses are entered by another. So if I come into here I will go into sales. You see now I am just presented with some more information because maybe I have multiple locations and specific types of business.

Here we have a retail catalog and an Internet store, as an example. Again, you have free form entry. One thing you will notice over here is that we have approval level, so when somebody is done not only can they save their data, work on it resave, but when they are ready to submit it to an approval level, they can actually submit it. Then whoever is assigned to this budget holder or this template, they can approve it.

The other thing we can do at this level is we could have worksheets and scenarios. Let’s come down here to expenses as an example. If I come down to expenses, and I don’t want to enter just one summary line for advertising, but I want to actually break that down for myself because I want to know that what I am going to spend in magazine advertising versus trade shows, I can actually create a worksheet.

I can come to that worksheet that is behind the scenes, and again you are seeing a grid format. I can begin to enter the information for my detail. Again my budget controller doesn’t want to see this. This just for my purposes, and then it will add to the total. When I am done, that total would then be populated into my spreadsheet. The other thing you will notice in this example is some color coded schemes because in the first example, I simply had a bunch of account lines. But here I am starting to show totals.

If I try to enter numbers in these cells, they are actually locked, and they can't be modified because they are totals or subtotals. You will notice then in this example I have a white cell. That means it's open for entry, and I could do that entry at any time. Also in this scenario you will see that salaries is locked.

Salaries is locked because the salaries’ budgeting is being done by separate people in a separate task which I will go to in just a second. And then as a budget controller, I can come in any time, and these yellow cells are actually locked as well because maybe at the budget controller level, these are based on their advertising budget, or maybe your advertising is done at the corporate level and it is distributed down to all the properties.

Individual managers want to see it because it impacts their profits, but for the most part they cannot enter or adjust that number. They can only see the number on their budget worksheet. So there is a lot of functionality that you can see for allowing for different permissions and security.

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Case Study of a Salt Production Company Using a Web-based Budgeting Application

Coastal Saltworks Ltd. is a medium-sized salt production company based along the Gulf Coast, specializing in the harvesting, refining, and packaging of sea salt for both industrial and consumer markets. The company operates across multiple locations, including harvesting sites, processing facilities, and distribution centers. With over 500 employees and an expanding global market, Coastal Saltworks Ltd. needed a more efficient way to manage its complex financial operations, including budgeting, forecasting, and expense tracking.

Historically, the company used spreadsheet-based tools for budget planning and financial management, which led to inefficiencies, manual errors, and limited visibility into real-time financial data. Recognizing the need for a more scalable solution, Coastal Saltworks Ltd. implemented a Web-Based Budgeting Application. This case study explores how the company successfully transitioned to a digital budgeting platform, improved financial transparency, and optimized resource allocation.

Challenges Faced by Coastal Saltworks Ltd.

Before adopting the web-based budgeting application, Coastal Saltworks Ltd. faced several financial management challenges:

  1. Manual Budgeting Processes: Budgeting was largely manual, with departments using Excel spreadsheets to create and track their budgets. This led to significant time spent consolidating data, reviewing individual department budgets, and reconciling numbers at the corporate level.

  2. Inconsistent Financial Data: With different departments and locations working independently on their budgets, Coastal Saltworks Ltd. encountered inconsistencies in data formatting, assumptions, and reporting practices. This made it difficult to maintain a cohesive, accurate view of the company's overall financial health.

  3. Limited Real-Time Insights: The spreadsheet-based system did not provide real-time visibility into budget performance, making it hard for the finance team and executives to identify budget variances early or track progress against financial goals.

  4. Lack of Scenario Planning: Coastal Saltworks Ltd. had limited ability to perform scenario analysis and financial forecasting, which was particularly important in managing the volatile costs of salt harvesting and transportation.

  5. Time-Consuming Reporting: Preparing financial reports for executive review or board meetings was a tedious and time-consuming process, often involving back-and-forth communication between the finance team and various departments to ensure accuracy and completeness.

Given these challenges, Coastal Saltworks Ltd. needed a more dynamic and collaborative solution that would automate budget processes, improve financial data accuracy, and provide real-time insights.

Solution: Implementation of a Web-Based Budgeting Application

In response to its financial management challenges, Coastal Saltworks Ltd. implemented a Web-Based Budgeting Application that offered real-time budgeting, forecasting, and reporting capabilities. The application allowed the company to move away from manual processes and into a more streamlined, collaborative, and data-driven budgeting process.

Key Features of the Budgeting Application

  1. Centralized Budgeting Platform:

    • The web-based system served as a central platform where all departments and locations could collaborate on their budgets in real time. This eliminated the need for emailing spreadsheets back and forth and ensured that all financial data was consistent and up to date.

  2. Automated Data Integration:

    • The application integrated with Coastal Saltworks Ltd.'s existing ERP (Enterprise Resource Planning) system, allowing for automatic data updates from procurement, production, and sales. This ensured that budget forecasts were based on the most recent financial and operational data.

  3. Role-Based Access:

    • The platform allowed for role-based access, ensuring that department heads could input and manage their budgets while the finance team retained oversight and control. This made it easier for the finance team to track budget submissions and approvals from different departments.

  4. Scenario Planning and Forecasting:

    • The application offered advanced forecasting tools that enabled Coastal Saltworks Ltd. to model different financial scenarios, such as changes in raw material costs, labor expenses, and market demand. This allowed for better strategic decision-making.

  5. Real-Time Reporting and Dashboards:

    • Executives and department heads had access to real-time financial dashboards that displayed key budget metrics, such as actual vs. planned expenses, budget variances, and cash flow projections. This enabled the company to monitor budget performance on an ongoing basis.

  6. Customizable Reporting:

    • The platform featured customizable reporting tools that allowed the finance team to generate detailed financial reports for stakeholders quickly. Reports could be easily tailored for different audiences, such as board members, investors, or internal management teams.

Implementation Process

The implementation of the web-based budgeting application at Coastal Saltworks Ltd. followed a structured, phased approach:

  1. Assessment and Selection: The finance and IT teams worked together to assess various web-based budgeting solutions. The chosen application was selected for its user-friendly interface, scalability, and integration capabilities with the company's existing ERP system.

  2. Data Migration and Integration: The finance team worked closely with the software vendor to migrate historical budgeting data from spreadsheets into the new platform. Additionally, the application was integrated with Coastal Saltworks Ltd.'s ERP system to ensure that financial data would automatically update in real time.

  3. Training and Onboarding: Employees across departments were trained on how to use the platform. The training focused on entering budgets, tracking performance, generating reports, and using scenario planning features. The finance team also worked closely with department heads to help them understand how to use the real-time reporting dashboards.

  4. Gradual Rollout: The web-based budgeting application was rolled out in phases, starting with the finance team and then extending to individual department managers. This phased approach allowed the company to address any issues early and fine-tune the system before full implementation.

  5. Ongoing Support and Optimization: The software vendor provided ongoing support and updates, ensuring that the system remained aligned with Coastal Saltworks Ltd.'s evolving financial needs.

Results and Outcomes

Within a year of implementing the web-based budgeting application, Coastal Saltworks Ltd. experienced significant improvements in its budgeting and financial management processes. Key results included:

1. Streamlined Budgeting Process

  • The time required to create and approve budgets was reduced by 40%. The centralized platform eliminated manual data consolidation and allowed department heads to input and review budgets simultaneously, speeding up the process.
  • With role-based access, the finance team could oversee budget submissions in real time, eliminating delays in approval cycles and improving overall efficiency.

2. Improved Data Accuracy and Consistency

  • The automated integration with the company's ERP system ensured that all budgeting data was accurate and up to date. This reduced the risk of errors caused by manual data entry or spreadsheet inconsistencies.
  • Financial data was now standardized across departments, providing consistent metrics and assumptions for financial planning.

3. Enhanced Financial Visibility

  • Executives and department heads gained access to real-time financial insights through the platform's dashboards. This visibility allowed them to track actual expenses versus budgeted figures and address budget variances more quickly.
  • The finance team could generate financial reports instantly, saving time and improving decision-making by providing more timely data to leadership.

4. Cost Control and Savings

  • By providing more accurate and real-time budget tracking, the application helped Coastal Saltworks Ltd. reduce unnecessary spending and stay within budget. Departments could track their expenditures more closely, and the finance team could identify cost-saving opportunities in real time.
  • The company estimated that it saved over $250,000 in the first year by reducing budget overruns, optimizing resource allocation, and eliminating inefficient manual processes.

5. Improved Scenario Planning

  • The advanced forecasting tools allowed Coastal Saltworks Ltd. to plan for different financial scenarios more effectively. For example, the company could model the impact of rising fuel costs on transportation expenses or fluctuating market demand for industrial salt. This helped Coastal Saltworks Ltd. adjust its budgets accordingly and prepare for market volatility.

6. Better Strategic Decision-Making

  • With access to real-time financial data and the ability to conduct scenario analyses, the executive team at Coastal Saltworks Ltd. was able to make more informed strategic decisions. This included decisions related to capital investments, production capacity expansions, and pricing strategies for new markets.
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