The best budgeting and forecasting integrations for ...

The best budgeting and forecasting integrations for

Blackbaud Financial Edge NXT

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You've already selected Blackbaud FE NXT, the leading non-profit accounting software for your organization. Now, the question is, "How can your organization best manage budgeting and forecasting?"

For many years, Excel spreadsheets were the `go to' answer for non-profit budgeting and forecasting. Why? Well, technically it works, most people know how to use Excel, and it's basically free (with your Microsoft Office subscription). These are very compelling reasons for a non-profit that is laser-focused on using the majority of funds raised on its mission and mandate, rather than operations.

However, despite some practical reasons for using Excel, there are some very real limitations and potentially serious issues to spreadsheet budgeting.

Have you ever found yourself wondering which version of Excel was the most current? Have you had a co-worker make a change to the document and not be able to tell what they did? Have you spent countless hours copying

formulas and links from sheet to sheet? Even though these issues may seem simple, they are time-consuming and frustrating. Plus, mistakes made during data entry can be costly, and a lack of analysis can mean missed opportunities for the organization and the communities it serves.

Perhaps the biggest issue with using spreadsheets is that you wind up spending so much time managing your spreadsheets that you don't have time to plan for scenarios. What if expenses increase, how will your organization respond? How will it impact the mission, headcount or other strategic units? Conversely, what if you are awarded a sizable grant or donation this year? You'll want a well-thoughtout action plan for how you will use those funds and have staff available to implement those programs.

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We know there is a better way to manage forecasting and budgeting than using Excel spreadsheets

Consider adding PowerPlan ? Questica's non-profit budgeting solution. It's cloud-based direct integration with FE NXT allows organizations to imagine a new way of budgeting.

What are the benefits? Ultimately PowerPlan can help your non-profit elevate the whole process of planning, forecasting, and budgeting by: ? Eliminating the hassle of Excel spreadsheets ? Increasing accuracy ? Automating the process of forecasting and budgeting ? Increasing consistency across departments

Let's look at each of these in more detail:

Eliminate the hassle of Excel spreadsheets

If you want your budget to be based on actuals and you are using spreadsheets, you'll need to export data from Financial Edge and drop it into your spreadsheets. While that doesn't seem like a big deal, your budgeting planning process can last 3-4 months. That means you'll need to continue to export the data and drop it into your spreadsheets on a regular basis (and ensure everyone in the organization is working off the most up-to-date version).

Now, let's talk more about the formulas. Formulas can be complex, and interlinking between sheets can make your budget document a beast. Let's assume you do it all beautifully, but all of your data is at risk if you're using Excel Online and an employee mistakenly over-writes a cell (if you didn't protect the cell) or if the sheet is corrupted. If that happens, you could lose weeks of work. And the deadline for the budget likely won't be extended.

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Increase accuracy

When using budgeting software like Questica's PowerPlan, you get a direct integration with FE NXT. You can pull revenue dollars (by contribution type, by source), actual expenses and statistical units (like square footage or hours worked). Your data will be kept current without the need for any exporting or importing process.

Exporting, cutting, and pasting will be things of the past. Formulas and calculations are built into the software. You don't have to worry about formulas getting deleted or spreadsheets getting corrupted. When it comes to the what-if scenarios, those formulas will be more accurate, thanks to up-to-the-month data.

Automate the process of forecasting and budgeting

For controllable expenses, you can easily distribute budgeting activities across departments. This empowers your organizational leaders to develop their budgets in a single application versus multiple spreadsheets. It also allows for an easy budget roll-up. If changes happen in the middle of the budget-planning process, they can be captured and quickly incorporated.

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Increase consistency across departments

We've all worked with someone who presents their data differently than how it was requested. How much time is wasted trying to reconcile unique department budgets? When you use the PowerPlan budgeting software, it forces all department managers to present information consistently. Similar assumptions are used across different departments. This eliminates a myriad of questions and re-work.

Elevate the whole process of planning, forecasting, and budgeting

So far, this whitepaper has focused on all the ways that Questica's PowerPlan can make the budgeting and forecasting process easier, consistent and accurate. Those benefits alone are compelling. But those benefits are the just the foundation that allows the forecasting and budgeting process to be more comprehensive.

Let's face it. Budgeting is often viewed as a necessary evil. But forecasting and planning doesn't suffer the same stigma. You can engage more of your team in planning and forecasting, thereby allowing the budget to be the output, not a drudgery.

When you free yourself from the hassle of Excel spreadsheets, you can spend more time planning for scenarios and analyzing results and impact. It transforms your financial product to a leadership tool.

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Here are some examples of how Questica's PowerPlan can elevate the process of forecasting and budgeting.

Remember that sizable grant or unplanned donation we mentioned earlier? What if this becomes a reality? What is your organization's plan? What will you do with the money? Are there rules or limitations to how the funds can be used? How will you report compliance with those rules, if applicable?

Conversely, what if you lose funding that you've relied upon through the years? How does that impact your ability to deliver on your programs and services? If your non-profit is committed to feeding people, will the quantity or quality of the meals be reduced? Or will you have to reduce the number of people you feed?

Funding isn't the only scenario to contemplate. Inherent expenses need to be taken into consideration ? what if gas prices go up significantly and your non-profit is one where transportation is a key service? You don't want to wait until it happens to create a wellreasoned action plan.

expenses as it relates to salaries, benefits, insurance, and office space. Can you see how spending your time on formulas and cutting and pasting prevented you from the real strategy behind leading your organization?

Beyond modeling for the "what-ifs," you can also use PowerPlan to analyze trends that will inform your next year's campaigns and programs. Let's say your non-profit utilizes direct mail campaigns. There is a significant amount of quantifiable data you can capture as it relates to design, printing, postage, etc. Historically, how much does this number increase on an annual basis? Capture that in your model.

There are so many factors that impact your budget. You can model for a strong economy or a weak economy. You can model for rising

Other considerations include:

? Building plans for all current staffing and future hires ? Allocating staffing out to all departments, projects and contracts ? Evaluating the impact of additional hiring, salary adjustments, and changes to benefit rates ? Projecting current year budget, multiple years out, or keep your current year forecast updated

based on changes in staffing or allocations

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?COPYRIGHT 2018. NON-PROFITS

Costs are just one part of the formula. You can also examine the effectiveness of direct mail campaigns or events. Create a model that presumes you'll raise $X for each direct mail campaign you deploy. When you are presented with a fundraising goal, you can look at all your sources of revenue and quickly know how many campaigns to run and what type of campaigns to run based on the analysis. And, when you're able to predict the effectiveness of a campaign along with the associated costs, your organization can better forecast its revenue.

If you'd like to learn more about Questica's non-profit budgeting solution ? PowerPlan, please visit our website at non-profits. Check our success stories to learn more about our products and decide which one is right for you. Interested in setting up personalized demonstration of how PowerPlan can help your organization, contact us today!

Leave formulas, exporting, copy/pasting, and managing versions behind so you can focus on building action plans and scenarios that allow your organization to be nimble and responsive.

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As a leader of capital and operating budgeting software since 1998, Questica's goal is to make public sector and non-profit finance better for everyone. Over 675 local governments, colleges, universities, K-12 schools, hospitals, healthcare facilities, and non-profit organizations throughout North America have eliminated spreadsheets, opting for smarter planning, budgeting, management, transparency and sharing with our solutions.

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