Implementing a successful budgeting process is a primary key to achieve organizational business objectives. Without an effective process in place, performance evaluation is virtually impossible. Budgets can help IT managers evaluate the performance of a business unit though comparison analysis of actual expenditures against budgeted amounts. These findings can aid in justifying IT costs or identifying why expectations have not been met. In addition, this information can be used to establish new goals and discovering the means to reach them through planning.
Through the Budget and Planning module, a financial manager can set up period budgets for business units and their services. At the end of each fiscal period, a variance report can be generated to evaluate the differences between actual and budgeted costs. This information may be then used to help identify the root cause for areas of inefficiency.
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