Why and how does Beyond Budgeting accelerate your company's growth?

What is Beyond Budgeting?

Beyond Budgeting" is an approach to performance management that has been developed to better respond to the challenges and market changes that companies face in an uncertain and constantly changing environment. It aims to improve the flexibility, responsiveness and agility of the company.

It is an alternative to traditional budgeting methods that can sometimes be too rigid and not adapted to the changing realities of the market, which can limit the company's ability to grow. 

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Beyond Budgeting involves replacing fixed annual budgets and long-term performance plans with shorter-term, scalable planning processes. This allows companies to focus on immediate opportunities, make faster and more informed decisions, and adapt to changing market conditions.

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The advantages

The advantages of Beyond Budgeting are numerous. First of all, as already mentioned above, it offers greater flexibility for companies. It is much faster to establish, and it is also much closer to reality.

Instead of being constrained by a rigid, fixed budget, executives can make real-time decisions based on market conditions. This flexibility is essential to adapt to rapid changes in the business environment and to seize opportunities as they arise. This allows them to better respond to the needs of their customers, thereby increasing customer satisfaction and loyalty.

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Beyond Budgeting also encourages a culture of accountability and internal collaboration. By allowing operational teams to make decisions in real time, the manager can delegate more responsibility and involve them more in the company's strategy. This approach strengthens employee cooperation and participation, which contributes to improved team productivity and job satisfaction.

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Finally, Beyond Budgeting will also facilitate decision making and help companies become more agile and responsive. By providing real-time information on the financial health of the company, executives can adopt a more flexible approach to spending and cash management. This in turn improves the company's operational performance and long-term financial performance.

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What tools should I use?

To implement Beyond Budgeting in your company, you must first review your existing budget planning and control process. 

To help you deploy Beyond Budgeting, it is important to use the appropriate tools, software and applications, such as Pennylane, Qonto, Libeo, GoCardless, Stripe or even Agicap.

These apps will allow you to monitor in real time the key performance indicators of your business to improve your profitability. They offer you the ability to plan and budget your activities. Most of these apps also provide reporting tables to easily find and track your key KPIs , such as revenue,EBITDA, margin rates and net income. In addition, these tools allow you to manage your cash flow and monitor incoming and outgoing flows, another essential element of business management. 

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Blendy, digital accountant, knows perfectly well the different tools and apps that will allow you to deploy a Beyond Budgeting approach. As a pioneer in digital accounting, we have been helping digital companies optimize and manage their financial processes for over 15 years. Our teams of Success Coach provide strategic and operational advice to help you choose the right tools and analyze the financial KPIs that will improve financial performance and stimulate business development.

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Want to know how to implement a Beyond Budgeting approach in your company to grow faster and more efficiently? Book an e-RdV now !

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