Use cases for Budgets module

The Budgets module in Flowtly BMS empowers organizations to effectively manage financial resources by offering flexibility, visibility, and integration across projects, contractors, and transactions. Below are key use cases that illustrate how the module supports financial planning, management, and transparency.

Use Case 1: Budget Planning for Projects

Scenario: A marketing agency is managing an annual project with multiple phases. The project as a whole is assigned to a primary budget, but some phases require individual budgets for better financial tracking and allocation. The agency needs a solution that supports this flexible setup while maintaining transparency and control.

Solution:

• Granularity: The agency sets the budget granularity to "monthly," enabling them to track financial activity and allocate precise amounts for each phase across the project timeline.
• Budget Assignment:
  • The main project is assigned to a primary budget for high-level financial tracking.
  • Phases are assigned to separate budgets when specific tracking is required. For example:
    • Phase A uses the same budget as the main project (shared budget).
    • Phase B is assigned its own budget to accommodate unique costs, such as external contractors or materials.
• Cost Tracking: All transactions for the project are linked to the appropriate budgets (main budget or phase-specific budgets). The system updates the Budget Summary and Costs tabs in real-time, ensuring accurate tracking for both the project as a whole and individual phases.
• Reports and Summaries: For phases sharing the same budget, costs are aggregated, while phases with separate budgets are reported individually.

Outcome:

This setup allows the agency to maintain a high-level overview of the project’s total budget while gaining detailed insights into specific phases. This flexibility ensures proper allocation of resources, highlights potential overspending, and provides stakeholders with a clear financial picture.

Use Case 2: Contractor Expense Tracking

Scenario: A consulting firm hires multiple external contractors and needs to track their expenses against specific budgets for accurate reporting and cost management.

Solution:

• Contractors Linking: Contractors are linked to the relevant budget during their setup or through the Edit Contractor option in the Contractors tab. Budgets can be assigned per contractor to track their specific costs or shared across multiple contractors for broader expense grouping.
• Cost Synchronization: All transactions associated with a contractor are automatically reflected in the assigned budget’s summary and costs table.
• Real-Time Updates: Any adjustments to contractor expenses, such as updates to linked transactions or budget allocations, are reflected immediately in the budget.

Outcome:

The firm achieves centralized visibility into contractor-related expenses, reducing the need for manual tracking across multiple systems.

Use Case 3: Linking Projects and Invoices to Budgets

Scenario: A construction company is managing a large project divided into multiple phases. The project as a whole is assigned to a primary budget, but individual phases have their own unique expenses. The company also wants to track client payments (invoices) directly against the budgets for clear visibility into income and costs.

Solution:

• Project and Phase Budgeting:
  • The main project is linked to a primary budget, providing an overall view of the project's financials.
  • Specific phases are assigned separate budgets when individual tracking is necessary. For instance:
    • Phase A is included in the main project budget.
    • Phase B is assigned a unique budget to track specialized costs, such as subcontractors or specific materials.
• Invoices as Income:
  • Client invoices are linked to the appropriate project or phase budgets as they are paid.
  • These payments are recorded as income and visualized in the Costs tab, where they are highlighted in green for easy identification.
• Dynamic Adjustments:
  • If unexpected expenses arise in one phase, the system allows dynamic reallocation of funds between budgets to maintain smooth project progress.
  • Adjustments are updated in real-time, ensuring the Budget Summary reflects the latest financial status.

Outcome:

The company achieves detailed tracking of both expenses and income for each phase while maintaining a consolidated view of the project's overall budget. Real-time updates prevent financial bottlenecks and support better decision-making for resource allocation. Stakeholders gain transparency into project finances, improving trust and accountability.

Use Case 4: Budget Groups for Consolidated Financial Oversight

Scenario: A non-profit organization runs multiple campaigns, each with its own budget. The organization also needs an aggregated view of its overall financial health.

Solution:

• Budget Groups: The organization creates a budget group for all campaigns. Within this group, individual budgets are created for each campaign.
• Group Reporting: The Budget Summary provides both individual campaign insights and a consolidated view of all campaigns’ financial performance.
• Dynamic Reallocation: Funds can be easily reallocated between individual budgets within the group to address funding gaps.

Outcome:

The non-profit gains both micro and macro-level financial insights. Resource allocation is optimized across campaigns, ensuring overall financial stability

Use Case 5: Monitoring financial health without Budget planning

Scenario: A startup wants to track expenses immediately but doesn’t have the time to plan budgets in detail upfront.

Solution:

• Direct Expense Tracking: The startup begins adding costs (transactions, contractors, projects, and invoices) to the budget without configuring detailed budget plans.
• Default Monthly View: The system automatically presents a default monthly view of expenses, ensuring financial activity is visible from the start.
• Flexibility: As the business grows, the startup gradually configures budgets and plans for better financial forecasting.

Outcome:

The startup achieves immediate financial visibility without delaying operational needs. Budget plans are introduced incrementally, aligning with the startup’s pace of growth.