Question

Discuss the effects that new technology has on preparing budgets. 300 words

Answer 1

New technologies help to prepare varied and customised budgets in a more efficient and accurate way. This helps the management to take better business decision. With the use of new technologies of ERP Applications, forecasting and financial planning has becomes more easier as it provide data in detail and as needed for the purpose. The advanced business application helps to organise business data in a structured way which helps to prepare all functional and flexible budgets in a timely manner. These tools helps to pull data for any business operation and activity. Any rules or criteria can be applied while pulling the data. This makes the budget preparation more convenient.

With the use of new technologies, the graphical presentation of budgets has become more dynamic. Now we can see the variance and changes on various formats of the graphs.

With the use of new technologies, ample number of budgets can be prepared by few personnel as maximum reports are fetched from the application. We just have to set the fields and criteria in the application as per our requirement and the system will automatically prepare the budget. This makes budget preparation more economical and cost effective.

These new application are developed in such a manner that comparison of budget with previous year can be done in a very less time. This helps the management to quick decision and formulate its policies for the prosperity of the business.