Budgeting costing and control

 The creation of a budgeting costing and control system is first and foremost an organizational process and only afterwards a technical process of collection and presentation of data.  Business Processes Ltd. has the ability to install complex systems in a complex business environment while taking into account all the elements, including social, connected with introducing control and budget systems.  We have proof of our ability – ask those for whom we have worked in the past.

A budget, costing and control system is not necessarily only software but also an organizational process carried out with tools already existing in the organization while combining spreadsheets or other tools existing in the organization.  In the end this “works” without any connection to the tools but with tremendous commitment by Business Processes Ltd.

The stages in establishing a budget and costing system

  • Building a budget and costing system
  • Reconciling  the operations system to the economic system
  • Integrating the budget / costing system with the accounting system
  • Building a management control and reporting system

 Building a costing and control system

  •  Building a budget costing system in the form of a statement of income and cash flows, while ensuring a change in the structure of the organization’s financial system.
  • Designing the budget system on the organizational, division and department level, including a division into profit centers or cost centers.
  • Designing the budget system at the production level. Including a division of main and secondary production lines and/or a division to production lines and to secondary production lines.
  • Designing a control system for investments in equipment and mechanization.  Full adjustment to profit centers or production lines.
  • Designing current reporting system of statement of income and cash flow forecasts, in the format of profit centers and fields of responsibility so that it will be possible to measure the performance of each and everyone in the organization from every aspect.
  • Adjusting  the operating system to the economic system.
  • Preparing tools to connect the logistics, production and technology systems to the economic system.
  • Building tools to define inventory values through defined measurement units
  • Measuring the consumption of materials and labor hours invested in production
  • Adjusting the bill of materials and the engineering product to the cost calculation system

 Integrating the budget and control of costs system with the accounting system

  • Reconciling the budget and costing system to the accounting system.  Supporting  reorganization of the chart of accounts so that it will be suitable for the budget system and facilitate current control.
  • Producing a budget vs. actual report combined with the accounting system.
  • Combining the budget performance report with the cost calculation system and producing a budget vs. actual report.
  • Combining the order system with the cash flows management system.

 Building a control and management reporting system

  • Determining departmental targets. According to reporting system planned with every organizational analysis organizing required.
  • A summary report of budget planning vs. actual.
  • Operative performance reports, including operative indexes to examine the state of the company and the production system or another system of outputs including financial operative ratios to present a picture of the company’s position and to facilitate continual improvement.