Let's be honest: In most companies, "Budget Period" is nothing but theater.
The finance department works for weeks, Excel files shuttle between departments, a "consolidated budget" is produced, the Board approves and files go on the shelf. Then what happens? The budget made in January becomes "garbage" in March with inflation or exchange rate increases. For the rest of the year, everyone acts as if they're running towards impossible targets.
If this is the case in your company too, I'm sorry to say: You're not managing your company, you're just wishing.
Today, wearing my Accountant and MBA manager hats; but more with a "Financial Engineer" lens, I'll tell you the truth: The era of static budgets is over.
1. You Can't Drive a Car by Looking in the Rearview Mirror
Classic accounting tells you "what happened yesterday". This is like looking only in the rearview mirror while driving 200 km/h on the highway. Yes, you see you didn't crash behind (in the past) but you can't see the curve ahead (the future).
The "Business Intelligence (BI)" based reporting systems we set up at Dizdar Audit are your windshield. They show you not how much you sold last month; but how much you'll sell next month if current trends continue, which week your cash will run out, and which product is putting you at a loss, in real-time.
2. The "Add 20% to Last Year's Numbers" Era Is Over
Traditional budgeting is lazy work. Saying "We spent 100 last year, there's inflation, let's write 150 this year" means increasing inefficiency and waste by 50% as well.
The "Zero-Based Budgeting" approach we advocate and implement requires engineering discipline. Every year, we act as if the company is being established today. We question every expense item, every employee, every investment with "Why is it necessary?". We don't copy past mistakes, we design future efficiency.
3. Get Out of Excel Graveyard: Dynamic Budget (Rolling Forecast)
The world is a VUCA (Volatile, Uncertain, Complex) world. 12-month fixed budgets are self-deception. The systems we set up work with "Rolling Forecast" logic.
That is, your budget is not written on stone tablets. When the exchange rate changes, raw material prices increase or demand falls; the system revises all year-end forecasts in seconds. Not a "Sir, we deviated from the budget" report but a "Sir, the wind changed, we adjusted the sails like this" strategy comes to the boss.
Final Word: Data Is Oil, But We Are the Refinery
Every company has data. You issue invoices, buy goods, pay salaries. But as long as this data isn't processed, it's like "crude oil"; you can't burn it, you can't use it.
As Dizdar Audit, we set up a "Data Refinery" for your company using accounting firm discipline, Industrial Engineering efficiency and Statistics science.
- Instead of boring trial balances, we give BI Dashboards that monitor your company's pulse in real-time.
- Instead of guesses, we offer mathematical Forecasts.
- Instead of excuses, we produce Strategy.
If you're still lost in Excel tables and waiting for the end of the month asking "I wonder if we made a profit this month?", you're late.
Come, let's install a "Radar" for your company. Because in foggy weather, the fastest is the one who sees the road best.