Your budget is “arguably the most important strategic tool,” said Danielle McLean, vice president and chief financial officer at the American Financial Services Association (AFSA), so creating an accurate budget that forecasts your organization’s revenue and expenses is critical. Now, many organizations are taking an “agile” approach, which allows for periodic updates and a more realistic way to budget given the rapid pace of change spurred by shifting economic and environmental considerations and new technologies.
“Having a budget that can be reported in real time—that’s the key and secret sauce,” said McLean. “We live and operate in a poly-crisis environment, and we have to plan—and plan early—as things will happen and change.”
Practicing agile budgeting means moving away from fixed, annual budget allocations to a more fluid strategy that can respond quickly to performance data and market shifts.
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