All 34 The Budgeting Process questions
More in The Budgeting Process
How is a not-for-profit or public sector budget different? What behavioral issues arise in budgeting? What is 'beyond budgeting' and why has it emerged? How does budgeting link to strategy and long-term planning? How should budgets and reward systems interact? How does organizational structure affect the budgeting process? How do you handle conflict between departments in budgeting? What is the role of contingency and buffers in budgets? How does uncertainty affect the budgeting approach chosen?
Advertisement
Budgeting & Forecasting › The Budgeting Process

How should organizations use technology and driver-based models in budgeting?

Advanced

Answer

Driver-based budgeting links financial outcomes to key operational drivers (e.g., revenue = customers x average spend), so budgets and forecasts update from a few assumptions. Modern FP&A software, integrated data, and scenario tools speed the process, improve accuracy, enable what-if analysis, and allow rolling updates—addressing the slowness and rigidity of manual spreadsheet budgets.
Real-world example Modeling revenue from customer counts and prices lets the team re-forecast instantly when an assumption changes.

Common follow-ups: What is a driver-based model? | How does software improve budgeting?

Rolling Forecasts Cash Budgeting The Budgeting Process
All 34 The Budgeting Process questions