Why Deploy a Budgetary Control Solution for NetSuite
After years of strong economic growth, NetSuite customers are confronted with tough times.
The challenge for businesses is to control their budgets tightly to navigate the economy. To stabilize the balance sheet and preserve cash, all corporate spending must be scrutinized and prioritized.
At the beginning of the recession, businesses took steps to rein in spending. At many businesses, staff cuts were necessary, to preserve cash. For others, it meant looking for ways to control spend.
Businesses tend to get lax about budgetary control during good economic times. Today, with revenues and profitability declining and cashflows under pressure budgetary control is imperative.
While most businesses have taken measures to reduce their costs, spend management remains a top priority. There is no telling when customer demand will rebound and cashflows will normalize.
Forty-seven percent of CFOs expect revenue declines of more than 10 percent this year, according to PwC’s U.S. CFO Pulse Survey, published in June. Seventy-eight percent of CFOs say their companies are considering deferring investments in facilities and general capital expenditures.
In this environment, budgetary control is critical. Businesses must know where their money is going and get control over it.
But many businesses rely on manual processes and spreadsheets to control their budgets. Things are even harder when managing expenses for large projects or a business has decentralized procurement.
Most businesses have tight control over less than 75 percent of their total corporate spend, according to the Institute of Finance and Management (IOFM). That is money slipping through the cracks.
To gain control over their budget, NetSuite customers are focusing on extending the functionality of NetSuite by enabling more comprehensive spend management. These businesses recognize that investing in budgetary control solutions for NetSuite will pay big dividends, no matter the economy.
Budgetary control solutions for NetSuite deliver:
- Better visibility: Budgetary control solutions for NetSuite provide decision-makers with real-time visibility into spending. CFOs can monitor and control spending proactively across the enterprise.
- Greater control: Budgetary control solutions check for budget availability when requisitions and purchase orders are created. The technology also enforces procurement governance best practices.
- Simplified operations: Budgetary control solutions support complex business processes such as Capex and Opex budgeting cycles and the amortization of expenses throughout the year.
A budgetary control for NetSuite makes this all possible by managing spend and ensuring budget compliance from the point of requisition. Click here to learn more about budgetary control.
