Are you looking for ways to grow your business and make it more efficient? So, it’s time to consider “beyond budgeting”.
What is Beyond Budgeting?
“ Beyond Budgeting ” is a performance management approach that has been developed to better respond to the challenges and market changes faced by businesses in an uncertain and constantly evolving environment. It aims to improve the flexibility, responsiveness and agility of the company.
It is an alternative to traditional budgeting methods which can sometimes be too rigid and poorly adapted to changing market realities, and which can therefore limit the company's ability to grow.
Beyond Budgeting involves replacing fixed annual budgets and long-term performance plans with scalable, shorter-term planning processes. This allows businesses to focus on immediate opportunities, make faster and more informed decisions, and adapt to changing market conditions.
Advantages
The advantages of Beyond Budgeting are numerous. First of all, as already mentioned above, it offers greater flexibility for businesses. Much quicker to establish, it is also much closer to reality.
Instead of being constrained by a rigid, fixed budget, executives can make real-time decisions based on market conditions. This flexibility is essential to adapt to rapid changes in the economic environment and to seize opportunities as they arise. This makes it possible to better meet the needs of their customers and de facto strengthens their satisfaction and loyalty.
Beyond Budgeting also encourages the establishment of a culture of accountability and internal collaboration. By allowing operational teams to make decisions in real time, the manager can delegate more responsibilities and involve them more in the company's strategy.
This approach strengthens cooperation and participation among employees, which helps improve team productivity and increases their job satisfaction.
Finally, Beyond Budgeting will also facilitate decision-making and help companies become more agile and responsive . By providing real-time information on financial health of the company, managers can in particular adopt a more flexible approach in terms of expenses et of cash management. This therefore makes it possible to improve the operational performance of the company as well as its long-term financial performance.
What tools to use?
To implement Beyond Budgeting in your company, you must first review your existing planning process and budget control.
To help you deploy Beyond Budgeting, it is important to use the appropriate tools, software and applications, such as Pennylane , Qonto , Libeo , GoCardless , Stripe or Agicap .
These apps will allow you to monitor your company's key performance indicators in real time to improve your profitability . They offer you the opportunity to plan and budget your activities. Most of these apps also provide reporting tables to easily find and track your essential KPIs , such as revenue , EBITDA , margin rates and net income . These tools also allow you to manage your cash flow and control incoming and outgoing flows, another essential element in business management.
Blendy , a digital accountant , is perfectly familiar with the different tools and apps that will allow you to deploy a Beyond Budgeting approach. A pioneer in digital accounting, we have been supporting digital companies in the optimization and management of their financial processes for more than 15 years.
Our Success Coach teams provide strategic advice and operational advice to help you choose the right tools and analyze finance KPIs who will improve financial performance and stimulate business development.
Want to know how to implement a Beyond Budgeting approach in your business to grow faster and more efficiently? Book an e-Appointment now !
Contact us to find out how we can help you support the growth of your business!
With Blendy , French digital accountant take advantage of digital accounting to accelerate your finance process and develop your business.
Pennylane , Dext , QuickBooks and Stripe experts, we support digital and IT service companies, e-Commerce, SaaS, SMBs, in France and internationally.