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Demystifying Budgeting Software Costs


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Manual, native Excel budget processes are sensible for the home or personal budget, particularly because of how few numbers are input, but when it comes to planning or forecasting for a growing company, streamlined and collaborative budgeting software is on the market to officially move the process into the 21st century.  Company-wide budgeting and forecasting is important in determining the growth and maturity of a company – by planning and developing within the organization’s means.

 

There are many contributing sectors of data within any company needed to analyze and plan for the next quarter, fiscal year, a five-year plan, etc.  When it comes to security and logistical simplicity of collaboration, Excel falls short.  However, Excel licensing is probably already a part of the current budget, so adding more expense for budgeting software into your current budget might be a big mystery.  This blog will go about laying out how much it costs to purchase budgeting software and the likely return on that investment.

 

Budgeting and forecasting software solutions have been trending recently due to the accessibility, the security, and the ownership they provide for individuals to manage their own budgets.  There are several Excel add-in financial planning tools, meaning that the finance team’s familiar Microsoft product is simply enhanced for added abilities while remaining business user friendly.  Much like report writing, budgeting software uses accounting logic that allows for automation and template reuse.

Budgeting_Cost

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Furthermore, today’s budgeting software is built for the collaboration of more than one department’s budget while remaining secure.  Without the back and forth of e-mail with departmental spreadsheets, and then joining them together to analyze the complete company’s budget, budget managers can authorize department heads to add their departmental budget data to a shared database.  Through that database, the budget manager can then generate a budget, and all the moving parts’ planning data will fill in to create a complete, consolidated organizational budget.  Sound good?  From here, most people then ask themselves, “How much is this going to cost me?”  Quoting a budgeting software solution can be sectioned off into software cost, implementation, annual maintenance and support, and personnel cost.

 

Software cost can be a direct purchase which is an upfront cost, or it can be a Software as a Service (SaaS) platform, where the buyer essentially leases the software, which is either hosted in-house or in the cloud.  Software purchase pricing ranges from a few thousand to 10k at the lower end of the market up to the higher end in the $30,000 - $50,000 range or more.  When looking at SaaS solutions, it will usually run from a few hundred per month up to five grand a month, depending on user numbers.  In terms of breaking even regarding SaaS versus a direct purchase, it is usually around 3 years, but SaaS tends to become the more expensive solution after that in relation to software cost.

To continue learning more about what to understand about the costs of Budgeting Solutions, read the rest of this article at http://www.solverusa.com/blog/2014/04/budgeting-software-cost/.

by Solver, Inc.

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