Elena Istomina: Budgeting is a collective process

Elena Istomina: The NPO Kompyyuter company concentrated on development and deployment of the solution for automation of budget management and management of finance in 2010. Demand for the ERP system offered by us earlier – KAS "Business Lux" – declined. This system closed all main units of tasks: accounting, warehouses, payroll calculation and so on. But business began to look for more ground solutions – demand for CPM systems so appeared. Therefore based on the corresponding subsystems of KAS "Business Lux" we selected the Prestima SRM-system. At the moment a budgeting task – one of most "open" for medium-sized and large enterprises. Reasons a little.

First, budgeting is not accounting or tax accounting which conducting is obligatory. It is the internal tool of the enterprise.

Secondly, considering the budget of the enterprise, the head often does not think of how it was received. There is a responsible economist who at the right time brings the budget to the head, answers the arising questions and makes corrections. But not it runs the budget and to report in its non-execution. Budgeting is, in fact, a method of delegation. And it is necessary to consider it on budget committee, but not in private with the economist. Therefore it is necessary to increase the responsibility of the centers of the financial responsibility (CFR), they need to be involved in planning process actively. As understanding of collectivity of process of budgeting is included into the culture of the enterprises, the relevance of budgeting systems will increase.

TAdviser: Implementation of a CPM system similar to Prestima, – the large project, both in terms of implementation time, and in terms of investments. And why the companies cannot be limited to spreadsheets, but not the whole corporate system? Than Excel is bad?

Elena Istomina: Yes than! Spreadsheets – the excellent versatile tool than which it is better seems to me, yet nothing was thought up. All budgeting systems at a certain stage or look "as Excel" or in general connect Excel for input and display.

If at the enterprise one-two economists are engaged in budgeting, then no budgeting system is necessary to them, it will be quite replaced by Excel. He is good the fact that he allows to show creativity to 1-2 specialists, having quickly rebuilt calculation algorithms, having replaced a budget form. It is possible therefore one of the most open areas is a budgeting in banks where modeling of different conditions, but not collection of information from a set of the CFD is the cornerstone of budget making. Excel is also irreplaceable at the first stages of setting of budgeting when forms of budgets are only born and constantly change. Here the flexible tool, but not a complex system is necessary. By the way, at this stage, connect not all specialists to process.

Approximately for 50% of the enterprises budgeting is still limited to participation of financial services and accounting. However, the second half already attracts the CFD. And here when it is necessary to involve 10-20 divisions in budgeting process, difficulties with consolidation, detailing, version control of data begin. Here already Excel it is effective is not able to cope and it is better to think of a budgeting system.

TAdviser: What functions of a budgeting system do you consider the main and basic for all companies and what should be implemented on requirement, in an individual order?

Elena Istomina: The budgeting system first of all should support consolidation of the users given a large number and, perhaps, the different systems. It is what she will be able effectively to make, and, as a rule, without strong completions. Here integration tools, interfaces of collective work taking into account access rights, scalability and other parameters will be necessary.

Forecasting and modeling (scenario planning) are already more difficult logical process. As a rule, it is executed by one-two specialists, and different algorithms are applied. It means inevitable adaptation of a system. One plans business trips from statistics of last year taking into account inflation coefficients, and another surely wants to estimate number of business trips on each project and to increase it by the estimated cost of departure. Put all options in standard functionality of a system it is almost unreal. Therefore, expressing desire to receive a system, "completely automating planning", the Customer should be ready to put at this time and means. And it is not important whether specialists of the company implementer, or own IT specialists will be involved.

TAdviser: You casually mentioned need of integration. The question "embeddings" in the existing information environment is very relevant for the systems of the class CPM. What integration tools are necessary in a case with budgeting automation system implementation with what it is necessary to be integrated surely with what it is desirable?

Elena Istomina: First of all, with systems providing data on the actual budget implementation. It can be both the ERP system, and the system of accounting or other class of systems solving specialized key problems of the enterprise (warehouse logistics, production management, management of repairs and so forth).

One of key and most widespread budgets at the enterprises is an income and expenditure budget (income and expense budget), and the fact on it mostly gathers from accounting data. The most widespread automation system of accounting in Russia – 1C. Therefore we built in the standard connector to this system Prestima.

For Prestima as a basic integration tool data loading from Excel was selected. In Excel at a certain stage of implementation there can constantly be data of separate operating budgets or data of the isolated non-standard divisions. In spreadsheets the fact on the transactions which did not find the necessary reflection in other systems, for example, in accounting can be registered. Also, files of Excel can be used as "transport" at integration with other systems.

As one of the main objectives solved by Prestima is operational management of finance, for the effective organization of processes we implemented integration with the systems of Client-bank. Automatic sending the approved payments and data reception about the performed operations and account balances significantly optimize management of finance. The standard delivery package at the moment includes integration with 18 banks. The list easily extends.

Other class of systems with which we considered necessary to be integrated is the electronic document management system (EDMS). The main reason of such need – collectivity of process of budgeting.

Some CPM systems have the built-in workflow mechanism to provide procedures of management of drawing up budgets, approval of payments and so forth. We adhere to other position. Processes of drawing up and approval of budgets – not the only circle of tasks solved by the staff of financial services of the enterprise. In addition they, as well as all other employees participate in other processes: acquaintance with orders, approval of statements and others. And a CPM system will not solve these problems any more. The full-fledged electronic document management system is necessary. So why to create to users of complexity? It is much more convenient to receive all tasks in uniform EDMS in which links to CPM system elements are enclosed (budgets, requests). Besides, in EDMS it is possible to save closing statements and to sign them with the EDS.

For a basis of the organization of processes we selected integration into the DIRECTUM system which has the same IS-Builder platform, as Prestima from our system, and therefore is integrated with it almost seamlessly, erasing for the user of border between two systems.

TAdviser: And one more question following from complexity of implementation projects of the similar systems. What in principle is the key to the successful project?

Elena Istomina: As I already mentioned, budgeting consists not in drawing up a large number of budgets, and in attraction to this process of all responsible the CFD which will be motivated both on exact drawing up budgets, and on their subsequent accomplishment. The director should coordinate process at least financial (if not general). At all this it has to be accurately clear to participants of process who and as will use information provided by them as according to it results of their work will be estimated. So employees will feel need of accomplishment of the tasks qualitatively and timely.