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New: Track budgets for your classes, locations and categories with Divisional Budgets

July 19, 2023

This article originated from the Xero blog. The XU Hub is an independent news and media platform - for Xero users, by Xero users. Any content, imagery and associated links below are directly from Xero and not produced by the XU Hub.
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Say hello to divisional budgets in Fathom; the ultimate tool to ensure your divisions are on track.

Now you can easily gain insights into the performance against budget of the divisions, departments, locations, profit centres, cost centres or other segments within your business.

This new feature is currently available for Xero and QuickBooks Online companies, and offers a comprehensive solution to import, track and compare divisional budgets.

Specifically, the new divisional budget features enable you to:  

  • Compare financials to budget for divisions in reports
  • View a side-by-side comparison of budgets for multiple divisions
  • Use your divisional budget data to track the performance of KPIs
  • Analyse your divisional budget data in Fathom's Breakdown tool
  • Xero users: calculate an overall budget from the sum of tracking category budgets
  • For QuickBooks Online users: import budgets across multiple financial years, and use hierarchical divisions for both class and location

Read on to see what the key features and benefits could mean for you, your business or your clients.

Staying on track with divisional budget data in reports

Go deep, go wide—compare divisional actuals to budgets in reports, side-by-side. This offers a quick way to identify discrepancies, so you can seamlessly begin planning to rectify. You can also use divisional budget data in tracking the performance of KPIs, making it easier to uncover insights.

Breakdown Tool

The Breakdown chart helps you analyse the performance of your divisions, and to track actuals against budgets.

Budget for divisions into the future

Great Scott! You can now import divisional budgets for forward projections and planning, to ensure all sections of your business are prepared for the road ahead (no DeLoreans required).

If you’re using Xero, the ability to import budgets for each tracking category means that you can now also aggregate those divisional budgets to create an overall company budget.

Budget for divisions into the future (XERO)

For QuickBooks Online users, when you import an overall budget with subdivisions, the budget data will be available to report on in Fathom at a divisional level. In addition, you can now import budgets for future financial years.

Budget for divisions into the future (QBO)-1

Improved budgeting workflows for Xero users

Fathom's divisional budget import is a game changer for Xero budgeting workflows. Fathom imports your tracking category budgets and aggregates them into one overall budget which can be exported to Excel. We've done the heavy lifting by ensuring that the file can then be easily imported back into Xero for quick reconciliation. No sweat!

Improving budgeting workflows for Xero Users-1

Additionally, if you’ve imported divisions as standalone companies, you can use Fathom to forecast financials for these divisions and save the forecast as a budget. This budget can be easily uploaded to Xero via Excel, enabling you to see your forecast in Xero.

Multiple budgets across time for QuickBooks Online

To help make the complex simple, instead of choosing the budget for a single financial year, we’ve enabled you to import budgets for multiple financial years from QuickBooks Online into a single Fathom company. Choose what you need, when you need it.

Supporting hierarchical class and location data for QuickBooks Online

With this update, QuickBooks Online users can now import entire hierarchical structures and have finances and budgets.

Supporting hierarchical class and location data for QBO

This feature ensures an easier workflow and accurate budgeting for businesses with complex financial structures.

supporting hierarchical class QBO

Using divisional data in formulas and KPIs

If you’re looking to gain insights into performance and make data-driven decisions—you guessed it—you can use your existing formula KPIs to track the performance of your divisions against their budgeted targets.

An example of divisional budgets in action

You run a company operating a chain of hardware stores. You use Xero, where you have set up tracking categories for store locations. You opened a store at the beginning of the financial year in a new location across town. You’ve budgeted for the new store to perform such that it will break even after one year and start turning a profit the following year.  

At the start of the year, you created some management reports in Fathom which included the budget for the new location.  

Now, twelve months later, you’re looking at your financial results compared to the original budget. It’s easy to see that you’ve exceeded your revenue projections—the new store has broken into profitability four months ahead of schedule! With this intel, you’ve decided to direct the early profits back into some required maintenance of your original site earlier than expected, improving the in-store experience for employees and customers.

Why leave it there?

To find out more about Fathom

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