Organisations want to re-forecast
more frequently to address budgeting problems
21st March 2006 91% of FTSE 1000 UK companies report their budget goes off track during the year and over half want to re-forecast more frequently to address the problems, according to a recent survey.
ALG Software, a UK based budgeting and forecasting software expert, and The Chartered Institute of Management Accountants (CIMA) have identified that while organisations want to re-forecast more frequently to improve their budget accuracy, 97% have major barriers to do so, with lack of time the number one stumbling block.
Of those surveyed, nearly half (43%) said their budgets went off track due to external factors such as assumptions made about their market, competition or the economy and 20% reported their budgets were too optimistic to begin with or inaccurate.
“I think the organisations surveyed sympathise with Gordon Brown’s task of forecasting an accurate budget,” said Richard Barrett, Senior VP, ALG Software.
“The majority acknowledge that they need to re-forecast more frequently to achieve accuracy but the continued use of time-consuming spreadsheets to collate information is costing them millions of pounds each year. The sooner businesses adopt modern methods of re-forecasting, the better.”
On average organisations took 14 days to re-forecast their budgets, with nearly half (47%) wanting to re-forecast on a monthly basis. Based on these figures, finance departments would spend almost half their time each month re-forecasting their budgets, if they don’t cut the time taken to re-forecast.
The use of spreadsheets as a main re-forecasting tool in organisations has fallen from 74% in 2002 to 49% in 2005, demonstrating that new software is being implemented.
Global analyst, IDC, reports that the market for planning and budgeting software is worth over $600million per year and predicts that, in Western Europe, it will continue to grow at 11.8% each year.
About ALG Software
ALG Software (ALG) is a global provider of Corporate Performance Management solutions, specifically within cost and profitability analytics and driver-based planning and budgeting. ALG’s applications can be implemented across an entire enterprise and a broad spectrum of industries. ALG assist organisations in understanding and controlling their costs, formulating and executing strategy, achieving greater responsiveness to change and boosting profitability and shareholder value. Ultimately ALG provides the foundation of profitable strategic and operational decision-making. The company operates across Europe, North and South America, Australia, New Zealand, South Africa, the Middle East and the Far East. www.algsoftware.com
This press release was distributed by ResponseSource Press Release Wire on behalf of Chameleon PR in the following categories: Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.