Control spending by enforcing Budgets
It’s not just Mr Hammond who worries about his Budgets. Any business leader, finance professional and departmental manager needs to keep control of spending.
However, most ERP’s are cumbersome, slow and complex and many accounting systems are designed for accountants - not business managers and employees.
As a result, many companies rely on shared spreadsheets, email - or simply don’t mange their budgets effectively.
The risks of not managing, or worse, not having budgets are apparent.
The business cannot easily keep a control of their purchasing and rely on purchases orders or even purchase invoices to identify costs and as a result are likely to suffer from cashflow problems, significant administrative burden and poor financial discipline.
That’s where Zahara comes in. Zahara is a purchase approvals platform that automates purchase requisitions, orders and invoice approvals and integrates with most software platforms such as Sage, Xero and QuickBooks Online.
One of Zahara’s most powerful capabilities is Budget Management. Authorised users can set up budgets by department, location, project, spend category (nominal) or cost centre giving control at whatever level is needed. Departmental or Project budgets can be sub-divided further into nominals and cost centres - ensuring granular control of expenditure.
For each budget, authorised users can set permissions and visibility (who can see or act on budget controls), budget period (eg weekly, monthly, annual, undefined), define warning triggers which alert budget owners as the budget is consumed, define budget commitment (based on approval, issuance of order and other parameters) and many other powerful parameters and controls to effectively enforce and manage budgetary control.
Once set, Zahara visually shows budget commitment, remaining spend and alerts to potential over spends or budget creep.
The platform not only controls spending, it provides the real time management reporting and audit trail that management require to ensure the effective use of the companies purchasing.