How Budgetary Control Solutions for NetSuite Help in Tough Times
With revenue growth hard to come by, cost reduction is a top priority for businesses.
Many businesses reduce their costs using brute force:
- Adjustments to growth plan
- Slamming the brakes on large capital projects
- Downsizing facilities
- Scaling back operations
- Eliminating products and services
While these bold measures may be a hit with the investor community, and they reduce overhead, they are not always the best way for businesses to right-size their spending during turbulent times.
Broad cuts and freezes can undermine the things that will help a business return to growth.
A better approach in many cases is for a business to strategically reduce its spending through tight budget control. The visibility and control provided by a budgetary control solution for NetSuite empower businesses to eliminate budget overruns, prevent rogue spending and achieve real-time visibility into spending from the point of requisition – all while eliminating the need for costly and error-prone budgetary control processes. As a result, businesses can surgically adjust their spending.
Here are some ways budgetary control solutions for NetSuite help businesses in tough times.
- Procurement governance through purchasing best practices. Budgetary control solutions for NetSuite eliminate the possibility of out-of-budget or rogue spending. Budget checking is enforced when purchase orders or requisitions are created. Budget over-runs can be stopped or put through a workflow review process, based on pre-configured rules. And budget versus actual reports are automatically reconciled against procurement data. This is just what an organization needs to keep its spending in check at a time when revenues are scarce.
- Real-time visibility into spending. Budgetary control solutions for NetSuite can enable a CFO and finance team to proactively monitor and control throughout the enterprise and enforce procurement governance to root out out-of-budget spending. Budgetary control solutions even support complex finance processes such as Capex and Opex budgeting cycles.
- Proactive spend management. The insights provided by a budgetary control solution can help decision-makers quickly respond fast to volatility. Unlike traditional spreadsheet reports – which are no longer responsive enough to the pace of change in the post-pandemic economy – real-time, granular budget data can be critical in helping a CFO determine how to address fast-changing market conditions. And decision-makers can instantly check-in on corporate spending and budget performance to determine progress and whether things need to change. Budgets can be increased based on meeting pre-determined thresholds in demand.
- Future-proofing the finance function. Deploying a budgetary control solution for NetSuite helps a business fare better during the next economic downturn, and not just prepare for it. With a budgetary control solution for NetSuite, businesses can adjust spending and budgets on the fly, strategically analyze spending, and respond to changing economic conditions with agility.
All this helps NetSuite users reduce their spending in tough times, strategically.