Top-Down Bottom-Up Budgeting with PowerExcel
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Bottom-up Top-down Budgeting
Both Top-down and Bottom-up budgeting concepts exist in most businesses simultaneously. People start at the bottom, and they've got experts in a small part of the business and that person has formulas and their methods and maybe even Artificial Intelligence if they’re advanced. They build the spot-on budget from the bottom up.
Then, a group of accountants are going to get together and they're going to consolidate all that detailed forecasting and budgeting and they come to a consolidated result. They take that up the chain to the board which takes it to the shareholders and the senior management decision makers.
They look at this consolidated number and they say “No, change this number, change this number, change that number.” They push from the top down.
Now, the team must take the targeted top-level number and get it to the bottom. If you've built your models in Excel, this is very, very difficult. You must go down to the bottom, change some assumptions, roll it all up, and check if you've got to the number.
If you didn't, you go down to the bottom again and you roll it up. This sort of circular process can take months, it's very expensive, and it's very time-consuming. Not to mention it's very demoralizing! 😰
However, if you use a different technology this can be a much, much easier process! Check out how PowerExcel does it in this video, and join the waitlist for the free PowerExcel Personal Version.
👇👇Download PowerExcel Personal 👇👇
https://web.paristech.com/powerexcel-...
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ABOUT PARIS TECHNOLOGIES INTERNATIONAL INC.
PARIS stands for Planning, Analysis, Reporting, Information Systems. We develop software platforms that enable connectivity across database systems; collaboration among users with their tool of choice (Excel, BI products, web, mobile); governance of secure, single-source, non-proprietary data models.