Gartner Research

Maximizing the Value of Budgeting Models

Published: 13 February 2019

ID: G00706992

Analyst(s): Finance Research Team

Summary

Learn how financial planning and analysis (FP&A) leaders get the most value out of their budgeting models. This research includes best practices for each of the three main FP&A budgeting models used: driver-based, zero-based and rolling-forecast-based.

Table Of Contents

Driver-Based Budgeting

Define Drivers That Account for Complexity

Leverage Business Partner Knowledge to Identify Relevant Drivers

Zero-Based Budgeting

Emphasize ZBB as an Ongoing Value-Maximization Exercise

Minimize the Number of Budget Submissions

Focus on Strategic Cost Trade-Offs

Rolling-Forecast-Based Budgeting

Limit Detail in Forecasts to Material Expenses

Embed Cost-Efficiency in Rolling Budgeting

Conclusion

About This Research

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