1 Copyright Winshuttle 2013

Heroes who transform the way their companies work.

Global Budgeting & Planning

Questionnaire 2013 - Findings

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ACCA Survey Response Overview

96%

4%

Membership participation

ACCA members Non ACCA members

3% 4% 5% 6%

27%

Top participating countries

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108 countries 1806 participants

Budgeting in a nutshell is the planning of company activity with the capability of controlling resources and analyzing results achieved during the course of the plan.

Survey Respondents’ Budget Responsibility

14% 20%

23% 24% 26%

47%

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Less than a quarter of the respondents own the entire budget process. Which provides more room for complications, more revisions, more cycles and long decision cycles for budget approval for the rest of the survey respondents.

Core Accounting Systems In Use

573

366

113 58 53 40 30 26 23 21

504

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A surprising number indicated that they only use Excel.

Budget Management

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40% 37%

18% 16%

11%

4%

By division Centrally Regionally By location Globally Other

More than half indicated that they start their

budgeting season with a formal announcement, which

is consistent with a centralized approach

The Budgeting Process

5% 37%

43% 5% 2%

9%

1 year out

6 months out

3 months out

1 month out

Yearend

Other

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80% start budgeting 3 – 6 months

before the end of the financial year

90% finalize budgets in less than 5 cycles

Top 3 Budgeting Methods

35.00%

32.00%

23.00%

IncrementalActivity basedZero based

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Incremental budgets were in use by almost 40% of respondents and in theory take less time to approve because they generally require

approvals more on deltas than on the actual numbers which are often inherited from previous years.

The surprising budget method was zero based budgets - historically they have been particularly popular in the public sector as a whole whereas in the private sector they are often limited to administrative overhead activities

Challenges with the Process

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90%

38% 29% 16% 9%

Key Tools Used • 32% reported actual-budget variances of >10% • 54% feel the budgeting frequency is just right • 21% have no plans to change budget frequency • Only 52% were happy with the status quo

Manageability Issues

Finance Disruption by Budgeting

Yes, 31%

No, 53%

Not sure, 16%

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Over half of the respondents felt that the budgeting process was not disruptive to finance operations.

The fact that half were satisfied with their budgeting process is most likely due to the flexibility of Microsoft Excel and the simplicity of getting budgets compiled only once a year.

Frequency

Discoveries through analysis

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What are the relationships between responses and the analysis of the discoveries reveled?

Dependence on MS Excel

• 90% of respondents use MS Excel as a key technology

• 49% of MS Excel users have no other tools yet are satisfied

• 41% use email in the process • Only 12% have workflow

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Companies still depend heavily on Microsoft Excel for budgeting & planning Data collation and coordination remains a major challenge with the process Findings:

Budget Cycle Time

• 49% take 3+ months to complete • 86% with long cycles have a actual-

budget variance of > 5% • 57% have 3 or less budget cycle

iterations per budget

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The majority of budgets take a long time to complete. Around half took longer than 3 months and a large portion of those with long budget cycles actually had variances of actual vs. budget greater than 5%

Budget iterations add time to the budget cycle and we determined that over half of the respondents have 3 or fewer budget cycle iterations. Even with a low number of iterations though, budgets seemed to take a long time to finalize.

Multi-participation

• 11% have >5 levels of approval • Banking & Public Sector dominate • 80% have <5 cycles of revision • 75% used a specialised tools • 39% find budgeting disruptive • 33% dissatisfied with the process

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Budgets often have many levels of participation

Complexity results in business disruption even with tools and this can lead to significant dissatisfaction

Budget accuracy

• 27% indicated actual-budget variance of 10%+ • 25% felt this was improving • Variance issues with centrally managed budgets

– 59% identified indirect costs – 43% identified direct costs

• 50% felt the budget frequency was just right

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Businesses have problems with budget inaccuracy

Data collation and commitment to the process were indicated as the greatest challenges Implementing rolling budgets seem for the most part to be absent from future plans

Budgeting more frequently

• 8% use rolling budgets • Banking, Healthcare, Media, Mining and

Professional Services dominate in this segment • 33% use formal tools in the process • Variances in actual-budget remain high

– >10% reported by 26% – 5-9% reported by 46%

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Moving to more frequent and rolling budgets will improve budget accuracy

Using tools doesn’t seem to improve precision but it appears to make rebudgeting easier

Conclusions

• Rolling budgets remain rare • Excel spreadsheets remains a No.1 budgeting tool • Managing and collating data is a problem area • Formal budgeting tools are not commonplace • Even when used, budgeting tools don’t improve

accuracy

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Workflow & control Process standardisation Participant/approver hierarchy Approval process transparency Hierarchical approval

The Winshuttle Advantage

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Business process improvement Historical data extraction Data & procedure distribution Data collation ERP synchronization

Customer story

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November 16, 2007

KP06 (Yearly forecast)

CO- controlling; updating cost elements

8 hours manually per cycle

30 mins to build 2 hours to setup for uploading Minutes to run

KP06 (Quarterly forecast)

CO-controlling; updating cost elements

4 hours manually per cycle

30 mins to build 1 hr to setup for uploading Minutes to run

• Founded 2002 • Total revenue of $233M • 600 employees • Maintain ~12,000km of

High Voltage power transmission lines and 280 substations in Alberta, Canada

Use Excel, SharePoint, Web, mobile, PDF for efficiency. Daily and periodic tasks completed more easily.

Systems of Engagement

Winshuttle’s Surround Strategy

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Provide automation solutions while leveraging existing skills and infrastructure. Autonomy for business users and improved control by IT.

Ease your ERP data creation or changes. Increase ERP ROI and user satisfaction. Increase the quality and detail of audit records.

Systems of Record

ERP

System of Enablement

Winshuttle Value

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Estimated value for one customer: Graphing actual transaction data against Winshuttle’s database (based on experience with nearly 2,000 customers) calculating the potential time and cost savings.

Winshuttle License & Maintenance Investment

Support Desk Savings

Productivity Savings

Annual Training Savings

Initial/Ongoing Development Savings

Deployment Savings

Year 1 Year 2 Year 3

$2,202,250

$2,487,190

$2,741,080

Annual Savings

Where to next?

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Find out how Winshuttle can assist your: SAP Finance processes - visit winshuttle.com/finance SAP Master Data processes - visit winshuttle.com/masterdata

Find out more about the challenges that companies faced, decisions they made, and the benefits they realized by implementing Winshuttle: Read a case study on one of our customers.

Learn more about Winshuttle’s no-programming products and solutions: View or register for a webinar View a product demonstration Explore the Winshuttle TV YouTube channel Browse the Winshuttle Community site

For a quick reply contact info@winshuttle.com

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Be a Winshuttle hero. Thank you.

info@winshuttle.com www.winshuttle.com