- Financial or department heads creating a number they feel “should cover it” and hoping for approval, as opposed to budget numbers being driven by the experience and activities of the previous period combined with current information from those on the ground.
- Not making provision for recruitment – from costs of the actual recruitment to budgeting for additional salaries and other staff costs.
- Not taking contractual annual cost increases from vendor contracts (for example rent), into account.
- Things just not adding up… Simple casting errors that throw everything off.
- Budgeting for expenses inclusive of VAT, resulting in over-inflation of expenses.
- Adding excess provisions and unplanned costs that never come to fruition, bulking up the budget with miscellaneous items.
- Including costs unrelated to revenue.
- Budgets that are predominantly fixed costs as opposed to more variable costs that allow some movement in line with business growth or change.
- A lack of understanding of, or ability to follow, budgeting instructions; causing delays, missed deadlines, incomplete or incorrectly completed budgets.
- Not monitoring trends of costs in relation to revenues compared to previous periods.
Monday, 22 February 2016
Budgeting is one of the most crucial aspects of business planning, and yet too often it is not given the attention and input it deserves. If done right, budgeting can help you to prepare for most any eventuality, saving you time and money in the long run.
Some of the most common mistakes we have come across in budgets are:
Using specialised budgeting software can help to ensure that these common mistakes don’t become central to your budgeting process. If your software is user-friendly for even the non-financial managers, the process becomes less complex and simple errors or exclusions are less likely to occur.
Monday, 8 February 2016
IDU is pleased to announce that Rob Jones of IDU New Zealand will be speaking at the inaugural combined SageConnect conference in Australia, which begins on 18 February 2016. IDU New Zealand has enjoyed considerable success since it acquired the distribution rights for the idu-Concept product a few years ago.
We are partnered with Sage Africa, Sage Middle East, and Sage Evolution Africa, whilst IDU New Zealand have followed a similar route with Sage Australasia. Sage is a leading global provider of business management software, services and support for small and medium businesses, and they also develop software solutions to meet the needs of specific industries and larger enterprises. idu-Concept is included in the Sage product price list as the recommended budgeting tool of choice for use with Sage Line 500, Sage X3, and Accpac ERP, which are distributed by Sage.
This conference is bringing together Sage customers from all their divisions in the Australian, New Zealand and Pacific Island region; and Rob Jones was an excellent and natural choice of speaker. He will be speaking on the business value of accessible, understandable information, and we all know that that is what idu knows best.
The conference will be held at the Australian Technology Park, just outside Sydney's central business district. If you will be there, don’t miss Rob’s talk and be sure to say hi!
Sage Connect conference (Australia)
The Business Value of Accessible, Understandable Information
Day 2 (19 February 2016), 10h45 in Room 5