giving you back time to focus
on what matters most
A Budgyt Case Study:
the quick details:
Admin Role: Sr.Dir.
Finance & Accounting
Location: East Ontario
the quick details:
Industry: Mortgage Lending
& Home Construction
Admin Role: SVP,
Location: United States
Any experienced CFO will tell you that one of the biggest challenges when starting a new job is the inheriting of spreadsheets that are riddled with errors.
There was a time when we lacked access to affordable technology to make the auditing of customized formulas and complicated spreadsheets simpler and more reasonable. As such, errors in spreadsheets that would cumulatively amount to large sums in the thousands would be dismissed and written off as the cost of using complex software and doing business. But these costs would slowly gnaw away at an organizations reserves creating a compounding problem simply being ignored. Reserves that have proven to be so critical and its value appreciated more during unprecedented times like the ones we face in the mist of the COVID-19 pandemic.
This is the challenge that Jason Kempt faced when he joined United Way as Senior Director of Finance & Accounting a few of years ago. Jason having immediately worked for the National Defense prior to joining United Way was accustomed to the types of tools and capabilities that existed for larger companies and how they were impacting financial software. So upon inheriting an outdated and over-complicated set of spreadsheets to handle the budgeting process for the Ottawa chapter, he knew that there had to be a solution that existed in the marketplace that solved these inherited problems at an affordable rate for a Nonprofit organization like themselves. That’s when he came across Budgyt and met with James, explaining the complexity of their budgeting process and the urgency in finding a solution that would solve the following pains and challenges that we identified:
United Way is a heavily siloed organization and this adds complexity to their business. It had too many cost centers and too many GL codes. In full transparency - they still do but the issue was that the process was decentralized with it being spread across various spreadsheets and created a very daunting task of having to merge and consolidate all of the different data together for cost recovery.
In addition this also meant having to manage the formulas and potential errors across a wide variety of unique spreadsheets with varying levels of complexity resulting in a high investment of labor hours in addressing these challenges.
Ream time view of Bottom Line impact
When business leaders were assessing or making a business decision, they wouldn't immediately see what the impacts of the decisions and allocations to the organization’s bottom line was because everybody was working within disconnected spreadsheets.
This resulted in business leaders possibly making decisions that would take days of consolidation before being able to see the impact of that decision and being able to reprise those decisions.
In having to constantly endure the daunting task of merging all of the complicated data and spreadsheets together, they started to feel what we refer to as Budgeting FOBO (Fear Of Broken fOrmulas) where the magnitude of any single formula error would cause unneeded stress and anxiety.
As these fears manifested with the increase in amount of errors and missing links over time, they knew that they needed to take quick action to upgrade their outdated process or have these errors slowly gnaw away at their reserves.
Complex budgets: Cost allocation
The complexity of the business is attributed to the various services that they provide but in particular it is in cost re-allocation.
Specifically - they process the charitable workplace campaign for the federal government in Canada and do that on behalf of a wide variety of charities, incurring costs in doing so.
The process to recover the costs for doing the processing of the various charities only increases the complexity of their entire process.
the features we delivered that
empowered them to know what's next
The most unexpected benefit:
immediate user adoption
In Jason’s own words:
“Well I might surprise you when I say this because I was surprised as I had a perspective when we rolled it out based on the fact we've got four Vice Presidents here and each of them are responsible for their own area and they're all very different personality types. And I was surprised how all four of them took to this like a duck to water. One of them actually said she enjoyed the budget process, and that was our marketing person so I was not expecting that. It almost gamified it for them, inputting in the numbers and seeing what would come back out. I was really surprised at how quick the user adoption was.”
the most convenient benefit:
the core benefit:
Budgyt empowers companies to embrace team collaboration. It’s why we don't charge for users as we believe that the best budgets are those with the most collaboration. And it wasn’t just his users that benefited, but the entire organization was able to see and praise the benefits of their new budgeting process:
“You probably wouldn't be surprised to hear this, but given the fact that I started this conversation by saying that the functionality actually mirrors the sales pitch…this year, we actually approved our budget right after the COVID 19 shutdown and people started working remotely. So it was our first board meeting that was done remotely. And our treasurer and the board chair and our chief executive just, they couldn't get over it. They got lavish praise on the budget process. Now they're not necessarily understanding it was enabled by Budgyt, but everything that they were praising was a direct result of Budgyt. And that was because of how collaborative the VPs were, how much time they were able to talk about the business, how they could talk about, you know, business activities first. And then the numbers followed behind. Like all that stuff's just a hallmark of a budget process where people can talk about the business instead of playing around with a bunch of spreadsheets.” - Jason
the most welcomed benefit:
“I love the nonprofit sector, but the nonprofit sector sometimes doesn't help itself. And I think a tool like this that's quite affordable and quite helpful and basically pays for itself in the first year, if I can help more people realize that this is an option for them, I'm happy to help.” - Jason
So feel free to connect with Jason via Linkedin here and ask him yourself how much Budgyt really helped them save hundreds of thousands of dollars in potential losses and you'll see that how fair and reasonable our prices are when compared to the savings you'll benefit from.
the unknown benefit:
United Way like many other nonprofits have been finding their traditional fundraising revenue is sort of declining with demographic change and as such government grant revenue is going up. Realizing these patters helps organizations, especially those like United Way. This takes time that normally would be consumed merging all of the decentralized data and ensuring that formulas didn’t have errors or missing links. With no longer needing to worry about that through the use of our hyperlinking feature, users were now able to focus on what mattered most - and for United that was identifying these patterns and securing the revenue needed to continue to support their charities and communities they represent.
As Jason put it “I think it is helping your organization realize, ‘Hey, you know what, we need to pull back from some of the traditional fundraising activities cause the return is not there and we need to invest in a position’ to chase grants or within our fundraising environment say, ‘Hey, you know what, it's trailing, but there's an opportunity over here, so let's pull a resource from this cash cow business that’s not growing and let's put it over here in this other growth area. So we made decisions about abolishing some positions and creating new positions during the budgeting process using Budgyt”
“I have to admit, I sometimes sound like I'm a very zealous convert. But when I worked in Deloitte, we used to try and sell capabilities like this for the big ERP systems. And honestly this product has done everything that we used to sell. The sales pitch that we used to give- all those benefits, we realized here most of them in the first year and the budget process has just been a breeze.”