Reinventing the Budgeting Process for Mid-Sized Companies to Increase Agility

The Limitations of Traditional Budgeting
for Mid-Sized Businesses 

The classic budgeting model, based on fixed annual planning, has its limits for mid-sized companies. In a constantly evolving business environment, budget assumptions quickly become outdated. According to a Gartner study, 70% of companies believe their budgeting process is no longer aligned with market realities. 

Moreover, the traditional budgeting process is often time-consuming and ties up numerous resources without necessarily providing the required flexibility. A PWC survey reveals that 60% of companies spend over 3 months on their annual budgeting process. 

Mid-sized businesses are therefore looking to optimize their process to gain efficiency and relevance. 

Towards a Transformation of the Budgeting Process 

To address these challenges, mid-sized companies are moving towards transforming their budgeting process. The idea is to shift from rigid planning to a more flexible approach, allowing for adjustments during the year. 

Some companies are even going so far as to eliminate their annual budget, replacing it with regular monitoring of financial performance and results. A Deloitte study shows that 30% of companies have already adopted or are considering adopting a model without a traditional budget. 

The objective is to focus on high-impact actions by involving operational staff more in financial management. 

The Contribution of Digital Tools in Budget Transformation 

To successfully carry out this transformation, mid-sized companies need to rely on powerful, tailored digital tools. 

Financial management software, such as those offered by Talentia, streamlines and secures budget exchanges. 

According to a KPMG study, 80% of companies consider digitalization a key lever for improving their budgeting and planning process. Adopting flexible, collaborative tools facilitates the implementation of more dynamic, responsive financial management in line with the business challenges of mid-sized companies. 

Digitizing Processes to Gain Efficiency 

According to a recent study, 75% of mid-sized companies consider digitalization a major lever for optimizing their processes. By automating time-consuming tasks, companies can focus on analysis and strategic decision-making. 

In 2024, digital transformation continues to gain momentum across European mid-sized companies. A survey by the European Investment Bank shows that over 70% of mid-sized businesses have adopted digital technologies, with a significant portion planning to increase investments in areas such as operational efficiency, data analytics, and cybersecurity. Priorities across Europe remain centered on enhancing automation, improving data-driven decision-making, and strengthening resilience against cyber threats. 

The Benefits of Real-Time Visibility 

Digital solutions provide real-time visibility into key performance indicators. 

Recent European surveys highlight a shift in priorities among mid-sized companies towards improving efficiency and placing increased emphasis on change management and data integration within their digital transformation efforts. Across Europe, the digitalization of financial management processes is becoming a critical focus, with organizations striving for more agile and data-driven financial operations to remain competitive in evolving markets. 

Optimizing Financial Processes as a Whole 

 This transformation enhances communication and ensures greater accuracy in financial data. Studies have shown that mid-sized companies that have digitized their finance functions report substantial improvements in overall performance.  

Talentia’s solutions are designed to support this shift by providing a unified, scalable platform for managing financial performance. Our integrated tools streamline and automate all financial processes, helping businesses achieve higher efficiency and reliability in their operations. 

Keys to a Successful Transformation 

•  Involve operational staff in the budgeting process 

The field expertise of operational teams is essential for accurate and responsive management. Engaging employees in budget planning enhances ownership and alignment, making it more likely for companies to achieve their financial goals. 

• Train and support teams 

Training teams on new budgeting processes is crucial for successful adoption. Upskilling employees helps ensure they can effectively contribute to the transformation, driving higher efficiency and performance. 

• Continuously measure performance and adjust 

Regularly monitoring performance indicators enables businesses to make timely adjustments and stay agile. Companies that perform monthly forecasts often achieve better outcomes by responding more quickly to market shifts. 

• Anticipate risks and uncertainties 

In today’s volatile environment, proactive risk management is key. Companies that anticipate potential challenges and implement contingency plans are more resilient and better positioned to navigate crises.