Budgeting is a coordinated spending plan for a set of activities that expects maximum value at a predictable cost to the organization. The two primary types of budgets are zero-sum and line-item budgeting. Zero-sum budgeting emphasizes priorities and needs and is developed around what is projected rather than what has been funded in the past. Line-item budgeting shows the cost of all resources but is organized based on type of resource rather than priority.
From a budgeting standpoint, especially when budget cuts are a possibility or there is a need for justification, zero-sum budgets are more helpful.
SARCI FinOps implement calculations for Zero-Sum Budgeting workflows through the organization. Every activity that requires any expenditure is systematically tracked against budgets and cost-centres. In absence of configured budgets, actuals per month & trends are shown against the activity.
Given below is an Example Workflow that helps track the budget plan vs actuals.
- Activity-wise Budgets
- Allocation per Department
- Company-wide Rollup
- Linked to Expenses & Purchase Indents
- Automatic Calculation on Budget Availability
- Bottle-neck analysis
- Performance evaluation Live Reporting
- Email Alerts
- Quotation Process for Historical data
- Maintenance Expenditure
- Interal Expenses across Activities
- Targeted usage of Grants, Loans
- Audit Trail of Project Consultancies
- Other Expenditure Practices