Guide

Driver-Based Budgeting and Planning: A Guide for Finance Teams

Driver-Based Budgeting and Planning: A Guide for Finance Teams

Pages 15 Pages

Driver-based budgeting (DBB) links revenue and expense planning to the variables that most impact business outcomes, creating agility and accountability by tying budgets to real activities and resources. Instead of static assumptions, DBB models use three to seven key drivers, allowing businesses to adapt quickly to external and internal changes. Benefits include sharper operational focus, faster reforecasting, and improved accountability through agreed business rules. However, complexity and lack of collaboration can hinder success. Purpose-built planning tools like Bizview streamline DBB with real-time data integration, workflows, and scenario modeling, ensuring accuracy, collaboration, and adaptability.

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