What is meant by Budget management?
"Budget management" refers to the administration and control of financial resources within an established budget to ensure that available resources are used efficiently and purposefully. This includes planning, monitoring, and adjusting revenues and expenditures, as well as adhering to financial guidelines and goals.
Typical functions of software in the area of "Budget Management":
- Budget Planning: Creating and managing detailed budget plans for various departments or projects.
- Monitoring and Control: Real-time monitoring of expenses and revenues compared to planned budgets.
- Reporting: Generating reports and analyses on the current financial situation and budget compliance.
- Forecasting Functions: Predicting future financial developments based on current data and trends.
- Alert and Notification Systems: Setting up alerts for impending budget overruns or unforeseen expenses.
- Adjustment Mechanisms: Flexibly adjusting budgets based on changed conditions or new information.
- Approval Processes: Implementing approval workflows for budget changes and major expenditures.
- Resource Management: Managing and allocating financial resources and other assets to specific tasks or projects.
- Integration with Other Systems: Seamless integration with ERP and accounting systems for consolidation and synchronization of financial data.
- Compliance and Audit: Ensuring compliance with legal and internal guidelines and supporting internal and external audits.