Business Intelligence Blog from arcplan

Essential Budgeting & Planning System Components – Part 2: Spreading


In Part 1 of this series – a planning software buyer’s guide – I covered the first essential component of a modern planning system: workflow. Let’s keep the ball rolling with another component that is vital to your next planning solution.

Spread methods are an efficient way to automate plans for a period without starting from scratch every time. Simply defined, spreading is the system’s ability to take a budget value and spread it over a range of periods based on a divisible operator (like percent per month, for example). Your planning system should include built-in spreading functionality, especially the more popular methods – even (the most used method in practice), spread like last year, and spread like last year +/- a dollar value or percent.

Essentially, spreading is a fast data entry method. It will save time to have your system manage and centrally control your corporate spread methods. Users should also be able to create their own. A nice-to-have feature is color changes where data has been entered. Click to expand the image above and you’ll see an arcplan Edge system, where blue cells indicate areas where data can be entered and yellow cells indicate that data has been entered during this session.

Note: The terms “spread” and “allocation” are often used interchangeably, but at arcplan we make a distinction between the two. To make it easy for our customers, we say that spreading is bottom-up only and occurs horizontally across financial periods, while allocation is vertically rolled-down spreading. For example…

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Essential Budgeting & Planning System Components – Part 1: Workflow


Workflow Calendar_smA planning software buyer’s guide

An efficient budgeting, planning and forecasting process is a cornerstone of successful organizations. Software goes a long way in driving that efficiency – and I’m not talking about Excel. If you’re outgrowing spreadsheet-based planning and will be evaluating dedicated planning solutions to facilitate more accurate, timely and agile planning, over the next few articles, I’ll be laying out the system components, or specific features, you’ll want to look for. You can see these components demonstrated in my recent webinar on Budgeting and Planning in 2013, but here I’ll write about them in more detail and explain why they’re important to the success of your planning initiative.

Enterprise workflow is what separates your financial planning or corporate performance management system from simple data collection and reporting systems. Planning systems with workflow allow planners to follow a series of steps to bring the plan from initiation to completion. Workflow logically orders tasks and enables managers to keep an eye on where their team is in the planning cycle.

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Budgeting & Planning in 2013: On-Demand Webinar


View-WebinarCheck out our on-demand webinar for an essential review of modern planning.

Budgeting & Planning in 2013
Speaker: Dwight deVera, SVP of Professional Services at arcplan

This webinar reviews how budgeting and planning are evolving and how you can keep up. It’s essential viewing for those interested in improving their process and evaluating new technology to do so this year.

We reveal:

  • How the planning process is evolving from simple annual capital, expense and headcount planning to planning for strategic and opportunistic contract, capital, and indirect projects
  • The essential components of a modern planning system, including online and offline capabilities, allocation and spreading, workflow, and commentary/ supporting details functionality
  • How integrating business intelligence within the planning process helps you gain insight into the effectiveness of the planners and identify the root cause of potential problems with the plan
  • And much more

View it now »


How to Perform Perfect Planning


4elementsToday, arcplan put out a press release about the 4 elements of a perfect planning process – and no, it’s not fire, earth, air, and water. You may have just emerged from your budgeting and planning season wondering if there’s a better way to go about it next time, if you can make it easier and more repeatable, or if you can help add value to the process. If so, read on. This press release covers how and why automation, linkage to corporate goals, rolling forecasts, and analytics are the keys to perfect planning.

The 4 Elements of a Perfect Planning Process

Planning can be the most dreaded activity or the most lauded, depending on how effectively the finance team manages it. But it is undoubtedly one of the most important exercises a company undergoes, as it lays out the future finance situation, which in turn should drive efficiency, improve performance, and unite everyone behind a common vision of success. As more companies around the globe deploy arcplan for budgeting, planning and forecasting, this international solution provider has compiled a list of best practices its customers follow to ensure planning perfection.

1) Automation
For many companies large and small, the planning process begins in Excel and involves a lot of manual data consolidation and time spent reconciling multiple versions of spreadsheets. This error-prone process is an incredible waste of time; planning in this way is inefficient and detracts from time that should be spent analyzing plans and working towards company goals. Automation is a better approach to aggregating plan data and has positive effects like improved consistency and time savings. A solution like arcplan Edge streamlines the consolidation process by simultaneously connecting to multiple data sources. This enables the system to act as a central repository with data entry and write-back functions, eliminating the reliance on spreadsheets by allowing planners to interact with live data in an Excel-like web interface. It also provides automated alerts based on user interaction, such as alerting managers when direct reports have completed a task in the budgeting workflow. Automation is hugely beneficial to the planning process because it enables timely completion of plans and diverts focus from the mechanics of the budgeting process to actual analysis.

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Planning Done Right at IMAX


planning-arcplan-imaxBudgeting, planning and forecasting is a critical process for organizations of all sizes who want to ensure profitable operations and well, plan for the future of their business. For finance teams who haven’t mastered the art of effective planning, month-end financial reporting and year-end planning is a chore. Those who have their financial processes down to a science enjoy timely completion of plans, plans that align with corporate goals, rolling forecasts, and the ability to analyze and dissect data as needed to make better decisions.

Aberdeen’s research study on Improving S&OP with Planning and Forecasting Technology provides insight on how best-in-class companies address key financial and business planning objectives. IMAX Corporation – the immersive motion picture technology company – was featured in the report. They’re an arcplan customer and a great example of a company that has fine-tuned sales and operations planning in order to improve business outcomes. IMAX is reaping the benefits of planning done right. Here’s how they made it happen:

1) They use technology to consolidate and analyze data.
Finance teams can waste many hours, days and even weeks consolidating data from various sources to create monthly and quarterly reports, leaving no time to analyze that data and make forecasts. IMAX overcame this problem by implementing an arcplan financial planning solution that…

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