Budget transfers may be done in the tool, both temporary and permanent

Description

Budget transfers in Corporate Performance Management (CPM) software pertain to the capability of shifting funds from one financial account or department to another, both on a permanent and temporary basis. This function is vital for non-profit and educational institutions, which often need to reallocate budgetary funds in response to fluctuating needs and circumstances. With this feature, financial planning and budgeting efforts can become more agile, targeted, and accurate.

Example Use Case

Scenario: A non-profit organization relies heavily on the CPM software for its financial planning. The organization frequently requires budget reallocation, especially between temporary projects and permanent departments. The existing software doesn't support budget transfers, complicating the process and introducing potential inaccuracies.

Solution: Integrating the budget transfer function into the CPM software allows the organization to adjust funds between departments and projects with ease. This functionality saves significant time and resources, ensures accurate financial reporting and empowers the organization towards better financial decision-making.

Considerations

Make sure the software supports both temporary and permanent transfers. This nuance is not always a feature and can be difficult to track manually. Ideally th system has an interface where all budget transfers with source to destination, time frame, and amounts are all listed in one location. If it does not, you'll be tracking this in a spreadsheet which defeats the purpose of the entire CPM tool.

If the system does not contain a native interface - meaning something the vendor has purpose built as a module - investigate if the implementation provider can create one for you inside the system. That functionality will be worth the investment.

Questions to Ask a Vendor

• Transfer Types: Does your software allow for both temporary and permanent budget transfers?
• User Accessibility: Can non-technical users easily make budget transfers on your platform without dependence on consultants?
• Budget Transfer List: Does your system maintain a detailed and searchable record of all budget transfers to ensure transparency and oversight?
• World of Possibilities: If you don't offer this, can it be built?