Business Automation and Software Blog

ERP Systems Make Budgeting Easier

Posted by Robert Baran on Wed, Oct 25, 2017 @ 11:00 AM


As your company heads into the budgeting cycle, you may already have the tools in place to make the entire budgeting process easier: Sage 300 or SYSPRO. Both ERP systems provide you with data on previous performance, current sales forecasts, expenses, and much more. This is the information you need to build a sound budget.

ERP Systems for Budgeting

Budgets typically reflect three items:

  1. Past year performance
  2. Anticipated or projected revenue
  3. Projected expenses 

Within your ERP system is the company’s financial information as well as sales figures. This information can be used to derive projected revenue as well as expenses. And of course, previous financial data is also within the system so you have all the information at your fingertips to begin the budgeting process.

You can also use the ERP system to check on new items added to the budget. For example, HRMS modules or payroll data can be used to see how many new employees were added. Information on equipment maintenance records can be used to assess when new equipment should be purchased or similar big upgrades. It’s all in the data in your system.

The following reports are usually the go-to reports in an ERP system for budgetary information:

  • Fiscal year-to-date comparisons: These comparisons help you review your overall profit and loss statement against previous performance to date. You can analyze revenues and expenses by category and study specific categories for further information.
  • Accounts payable: Use these reports to determine what bills still need to be paid. Review recurring expenses and note which areas, if any, you can cut expenses. If not, account for them in your new budget.
  • Accounts receivable: Before budgeting for next year, make an effort to close outstanding receivables. Review customer accounts to make projections about income for the next fiscal year.

Additional data added to these reports may be enough to fill out the big picture. Economic forecasts, industry trends, and government reports may add important information to help you accurately project future sales and other trends.

Choosing Zero-Based or Incremental Budgeting

No matter which budgeting system you use, you can still use data from the ERP system to improve your budgeting process. A fresh budget, developed around current needs, is one way of creating a budget. This “zero based” budgeting starts with a balance of zero, and manager must make a new case each year for their planned expenditures.

Another method is to use last year’s budget and build in incremental changes based on data. Since you have ERP data, you have a more accurate picture of the budget status and can build in increases or decreases accordingly.

Both methods of budgeting have merit. No matter which method is chosen, ERP data can help you create and build a budget.


If you have SYSPRO or Sage 300, you’re in great shape to use it for budgeting. If you don’t yet have an ERP system, PositiveVision can help.

PositiveVision provides consulting and services to manufacturing, warehousing, and distribution companies. We can help you with choosing an ERP package and creating or adapting dashboards for your executive team.

Sage 300 offers a powerful, flexible ERP system built so that it grows with your business. SYSPRO automates many businesses processes and can help you improve communications with customers, among other benefits.

Learn more on our website or contact us today.

Topics: Sage 300, SYSPRO